Doré Copper Mining Corp. (TSXV: DCMC; OTCQX: DRCMF) has received positive results from its Preliminary Economic Assessment (PEA) for the restart of the Chibougamau mining camp in Quebec.
The PEA supports a hub-and-spoke operation with the high-grade Corner Bay copper-gold deposit as its main underground mine along with the Devlin copper deposit and the former Joe Mann gold mine providing feed to its Copper Rand mill.
The PEA demonstrates attractive project economics with optionality for expansion into a significantly larger operation, re-establishing the Chibougamau mining camp as a long-life copper and gold producer.
PEA Highlights
- Attractive project economics:
- Base case metal prices of US$3.75/lb Cu and US$1,820/oz Au:
Pre-tax NPV8% of C$367 million and 30.7% IRR
After-tax NPV8% of C$193 million and 22.1% IRR - Spot metal prices of US$4.20/lb Cu and US$1,854/oz Au:
Pre-tax NPV8% of C$555 million and 40.1% IRR
After-tax NPV8% of C$303 million and 29.4% IRR
- Base case metal prices of US$3.75/lb Cu and US$1,820/oz Au:
- Mine life of 10.5 years: Metal production of 492 Mlbs Cu, 142,000 oz Au
- Average cash operating costs of US$1.35/lb CuEq and all-in sustaining costs of US$2.24/lb CuEq
- Light capital intensity: Initial capital of C$180.6 million (including C$24 million contingency), translating to a Tier 1 Capital Intensity Index (initial capital / annual CuEq produced) of US$2.64/lb CuEq or US$0.25/lb CuEq LOM
- Scalable operation: Mill has 25% excess grinding capacity (over the maximum annual throughput) providing opportunities to add, discover, or acquire other properties in the Chibougamau mining camp
- Long life tailings storage option with minimal environmental impact: Implementation of dry stack tailings and ore sorting technology provides for a maximum capacity of 12 Mt on the existing Copper Rand tailings management facility (“TMF”)
- Modernisation of the mill and TMF: PEA study modernizes the existing Copper Rand mill and TMF so that they are productive and cost efficient and minimises impact on the environment
- Opportunities for mine life extension: Corner Bay and Joe Mann deposits remain open at depth with strong potential to add additional resources and extend the mine life. Potential for additional mill feed during mine life with the advancement of its exploration projects in Chibougamau mining camp.
“The completion of the PEA is a major accomplishment from our team and gets us closer to our near-term objective of restarting the Chibougamau mining camp,” President and CEO, Ernest Mast, said.
“This achievement has come with the excellent exploration results from Corner Bay over the last few years where we have been able to significantly grow the mineral resources. The PEA represents today’s status of the projects but we envision scaled expansions and future growth at both Corner Bay and Joe Mann while eventually sequencing in other deposits across our large land package in the Chibougamau mining camp.
“With three projects in the PEA, the average annual production over the mine life is approximately 50 Mlbs of copper equivalent, with a high of 90 Mlbs of copper equivalent. Our vision is to operate a viable sustainable hub-and-spoke operation over multi-decades to become a significant copper producer in Québec.
“Our next steps include commencing a feasibility study and submitting permit application with the provincial government. We look forward to working with Ouje-Bougoumou Cree Nation and the towns of Chibougamau and Chapais with the support of the government to advance the restart of the Chibougamau mining camp.”
Next Steps
Doré Copper is currently completing a 45,000 m exploration drilling program at Corner Bay, which will be followed by a 5,000 m exploration drilling programme at Devlin. This exploration drilling programme is focused on upgrading the Inferred Resource to Indicated Resource for the feasibility study, which is expected to commence during Q3.
Doré Copper has engaged Englobe, based in Québec City, to assist the Corporation in submitting a provincial environmental impact study later this year. Baseline work is already underway and community consultation is expected to commence in Q2.
For further information please visit: https://www.dorecopper.com/en/
