A CONCEPTUAL mining study (CMS) has been completed for Coppermoly Ltd’s 90%-owned Simuku porphyry copper-gold-molybdenum project in West New Britain province.
The CMS was completed to help in the planning of future exploration and development at Simuku.
The study showed that further drilling was warranted at Simuku to estimate a resource associated with near-surface secondary copper enrichment in an upper super gene blanket, prior to the start of a feasibility study.
“Once a resource of super gene mineralisation is established and a feasibility study completed, the Simuku project has the potential to become an open pit copper-molybdenum-gold mine,” Coppermoly managing director Peter Swiridiuk said on behalf of the board.
Over the next two years, exploration would focus on further drilling to increase the existing mineral resource and estimate a separate near-surface resource of higher grade secondary copper.
This would help lead to a feasibility study which will improve the level of confidence of the cost estimates used in the CMS.
Among the significant findings from the study is that Simuku could have an open pit that can yield 196.6 million tonnes of raw materials good for a 10-year mine life.
* A mining rate of 20 million tonnes per annum (Mtpa);
* At a copper commodity price of US$2.50/lb (K6.78) and a power cost of US$0.25 (K0.68)/KWH , the project demonstrates a positive cash flow in year three;
* An open pit and mobile crusher will optimise haulage distance and reduce fuel costs;
* Mine design is relatively simple with 15m high benches;
* Estimated capital costs of US$671 million (K1.820 billion); and
* Operating costs at 20mtpa of US$12.09 (K32.82)/tonne of ore.