XXIX Metal files PEA for Opemiska
Copper project developer XXIX Metal has filed a preliminary economic assessment (PEA) technical report for its Opemiska copper project in Chapais, Québec, confirming a long-life operation with strong margins, rapid payback and substantial leverage to higher copper and gold prices.
The PEA outlines a 17-year mine life producing 715-million pounds of payable copper, 409 000 oz of gold and 2.08-million ounces of silver. The base case delivers an after-tax net present value (NPV), using an 8% discount, of C$505-million and a 27.2% after-tax internal rate of return (IRR). Using spot pricing, the after-tax NPV, using an 8% discount, increases to C$897-million with a 39.3% IRR.
Initial capital of C$617-million is expected to be paid back in 2.3 years, driven by high-grade feed in the early years. Across the first six years, annual recovered payable production is forecast to average 59-million pounds of copper, 34 000 oz of gold and 174 000 oz of silver.
Opemiska is positioned as a low-cost producer, falling into the first quartile of the global cost curve with a C1 cash cost of $1.03/lb, net of by-product credits, during the first six years. Life-of-mine (LoM) C1 cash costs average $1.40/lb.
LoM revenue of $4.40-billion is weighted 70.7% to copper, 27.9% to gold and 1.4% to silver.
The PEA draws on 44.3-million tonnes of inferred resources grading 0.32% copper, 0.18 g/t gold and 0.77 g/t silver. XXIX notes that the project has substantial upside, with drilling continuing at the Cooke gold zone, located 3 km east of the proposed pit.
Opemiska covers 21 333 ha and incorporates four past-producing mines, with Springer and Perry forming the basis of the current PEA. The project benefits from significant existing infrastructure in the Chapais–Chibougamau region.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Latest Multimedia
Showroom
Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
