Candente Copper Corp. (TSX:DNT) has received robust Preliminary Economic Assessment (2022 PEA) results for its 100% owned Cañariaco copper project in Northern Peru.
Based on projected average annual metal production of 173 million (M) pounds (lb) (78,543 tonnes) copper, 31,395 ounces (oz) gold (Au), and 703,588 oz silver (Ag) for 28 years and an initial capital cost estimate (CapEx) of US$1.04 billion, the Cañariaco Norte project has an after-tax net present value (NPV) of US$1,010m, and after-tax internal rate of return (IRR) of 16.3% using a copper price of US$3.50 /lb, US$1,650/oz Au, US$21.50/oz Ag and a discount rate of 8%.
The NPV increases to US$1,833 M, with an IRR of 21.9% and payback of 4.5 years when using a copper price of US$4.50/lb, US$1,650/oz Au and US$21.50/oz Ag. The C1 cash operating cost is estimated to be US$1.28/lb of copper. The forecast strip ratio is 0.66.
“We are very pleased with the results of this new PEA which has achieved three key project objectives: 1) a lower initial capital cost; 2) a subsequent project expansion financed from cash flow and 3) enhanced environmental, social, and governance (ESG) practices,” President and CEO Joanne Freeze said.
“The lower CapEx offers many more opportunities to finance the project. The focus on enhancing ESG practices led to a single dry stack waste management facility (WMF) with co-mingling and co-disposal of waste rock and filtered mill tailings, would produce an overall smaller footprint for the project that is further distanced from farming communities.
“Building on the ESG mandate, geometallurgical modelling of the Cañariaco Norte deposit gives a better understanding of the mineralisation, resulting in a highly marketable concentrate with no need for arsenic treatment and lowers the projected operating cost estimate (“OpEx”)”.
“The 2022 PEA presents an alternative business case for developing the Cañariaco Project with a smaller initial CapEx, however larger companies could prefer to develop it as a larger project with a much higher throughput on start-up. “The Cañariaco project offers many advantages.
“It is reasonably close to key road and power infrastructure, has a low strip ratio, moderately soft rock (BWI 11.2), low operating cost and offers excellent potential for discovery of additional mineralization. The very large data base from previous engineering work supports the 2022 PEA which together could allow moving directly into a feasibility evaluation phase.
For further information please visit: https://candentecopper.com/
