Overview
Central Asia Metals plc has released the results of a definitive feasibility study (DFS) for its 75%-owned Copper Bay tailings project, in Chile.
Based on a mineable resource of 34.8Mt at a grade of 0.24% copper (84,635t contained), the project could produce 8,640t/y of copper for seven years at an average C1 cash cost of US$1.37/lb. With an initial capital investment of US$88.5 million and using a forecast copper price of US$3.00/lb, the project would deliver a post-tax IRR of 19.1%.
The project is a site of historic tailings disposal on the beach at Chañaral Bay, in the Atacama Region of northern Chile. The DFS follows a pre-feasibility study completed in 2015.
However, despite the positive result, the company has decided not to go ahead with the project at this time. Gavin Ferrar, Business Development Director, remarks, “Given the current uncertainty with regard to the near and medium term expectations for copper, the CAML Board has recommended that the project remains in our development pipeline while we review our options. We will update the market as and when appropriate.”
About Central Asia Metals
CAML is a dividend-paying, base-metal producer with operating assets in Kazakhstan and, most recently, Macedonia. The company’s primary focus is a low-cost, copper dump treatment operation associated with the Kounrad copper mine in Kazakhstan, from which it has produced copper metal since 2012.
Positive DFS for Copper Bay but CAML defers construction decision (AIM: CAML)