Core Viewpoint - Marimaca Copper Corp. announced the results of its Definitive Feasibility Study (DFS) for the Marimaca Oxide Deposit (MOD), targeting a nominal production of 50,000 tonnes per annum (ktpa) of copper cathode over an estimated 13-year reserve life [1][2][3] Financial Metrics - The pre-production capital cost is estimated at US$587 million, with a capital intensity of US$11,700 per tonne of copper production capacity, positioning the MOD among the lowest capital cost copper projects globally [2][20][26] - The post-tax Net Present Value (NPV8) is estimated at US$709 million, with an Internal Rate of Return (IRR) of 31% based on a long-term copper price of US$4.30 per pound [2][39][45] - At the current 3-month rolling average COMEX price of US$5.05 per pound, the post-tax NPV8 increases to US$1.07 billion, with a 39% IRR [2][39] Production and Operating Costs - The DFS outlines a steady-state production of approximately 49 ktpa of Grade A LME copper cathode during years 2-10, with average C1 cash costs of US$1.68 per pound and All-In Sustaining Costs (AISC) of US$2.09 per pound during this period [2][19][34] - The life-of-mine (LOM) C1 cash costs are projected at US$1.84 per pound, with AISC at US$2.29 per pound [2][34][37] Mining and Recovery - The mining operation will utilize a simple open-pit method with a life-of-mine strip ratio of 0.8:1, including pre-stripped material [2][12] - The LOM heap leach copper recoveries are estimated at 72%, with the first five years projected at 78% [2][16] Growth Opportunities - The DFS is viewed as a starting point for the company's organic growth strategy, with potential for future expansions and additional production capacity from nearby deposits such as Pampa Medina and Madrugador [2][7][9] - The company is also exploring sulphide exploration potential at both Marimaca and Pampa Medina, supported by recent drilling successes [2][7] Project Development and Financing - The project permitting process is well underway, with environmental approvals anticipated by the end of 2025, allowing construction to commence in 2026 [2][8] - Debt financing discussions are ongoing, with the objective of identifying preferred financing partners by year-end 2025 [2][48][49] Technical and Operational Details - The DFS incorporates a dynamic geo-metallurgical model based on extensive metallurgical testing, ensuring robust forecast economics [2][16] - Initial designs include oversized key equipment and infrastructure to facilitate potential future scale expansions [2][6]
MOD Feasibility Study Confirms Robust Capital Intensity and 31%+ IRR; Maiden Ore Reserve
Globenewswire·2025-08-25 21:58