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.
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