(MENAFN- ProactiveInvestors - Australia) Avalon Minerals (ASX: AVI) has delivered highly positive results from a recent Scoping Study that has confirmed the technical and economic viability for a copper-magnetite mining operation at the Viscaria Project in Sweden.
Importantly, the C1 copper cash operating costs, net of iron credits, for the base case and development case A open pit mining scenarios are predicted to be in the lower quartile of copper producers.
Key metrics for a base case open pit mining operation scenario include a net present value of US$61 million on the production of 9,400 tonnes of copper and 382,000 tonnes of iron per annum, for C1 cash costs (net of iron credits) of US$0.65 per pound.
The study outlined three other development scenarios, which by converting exploration targets to resources could increase the potential net present value to US$111 million, US$170 million and US$198 million respectively.
These values are based on predicted C1 cash costs of US$0.47 per pound, US$1.03 per pound and US$1.03 per pound respectively.
At the current copper price of around US$3.69 per pound, the net present value for each of the three development scenarios would increase to US$186 million, US$272 million and US$312 million respectively.
Development Case C envisages annual copper production of 25,500 tonnes and iron production of 519,000 tonnes.
Avalon will begin a major drill program in November 2012 aimed at converting exploration targets to resources to underpin delivery of the development cases outlined in the Scoping Study.
Drilling completed at the A and D Zone prospects earlier in 2012 showed that the copper and copper-magnetite mineralisation extends beyond the current resource boundaries, providing upside to the extension of the current resource.
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