Marimaca Copper Corp. (“Marimaca Copper” or the “Company”)
(TSX: MARI) is pleased to release the high level results
of a detailed trade-off analysis, conducted by independent
consultants, Gestion y Economia Minera Limitada (“GEM”), for the
development of its flagship Marimaca Copper Deposit (“Marimaca” or
“the Project”).
Highlights
- GEM conducted a detailed trade-off analysis of
potential development strategies for Marimaca including:
- a smaller scale, low capex option utilising existing
processing infrastructure at the nearby Ivan Plant;
- a phased development to grow from smaller scale to full
scale production, utilising both the Ivan Plant and/or greenfields
plant closer to the Marimaca deposit; or
- upfront full-scale development utilising standalone
greenfields plant at the Marimaca deposit.
- The GEM analysis confirmed that a full-scale
development is the optimum strategy and that Marimaca is an
exciting, mid-size, copper project.
- The full-scale standalone development would
comprise:
- Large, bulk mining, open pit method of
extraction;
- Crushing, Agglomeration, Heap/ROM Leaching and
Solvent-Extraction, Electro-Winning (“SX-EW”) processing;
- With current Mineral Resources, design capacity for up
to 40,000 tonnes of copper cathode production per
annum.
- The Preliminary Economic
Assessment (“PEA”) is progressing the full-scale
option and, despite disruptions due to Coronavirus, is expected to
be completed around the end of June or early July
2020.
Michael Haworth, Executive Chairman of
Marimaca Copper Corp commented:
“As part of the Preliminary Economic Assessment,
we engaged GEM to conduct a detailed trade-off analysis of the
myriad of potential development routes available for the exciting
Marimaca Project.
“While this analysis is at an early stage, GEM
concluded that Marimaca is clearly a very promising project within
the global sphere of copper development peers. GEM’s report also
confirmed that Marimaca warrants development as a standalone
project with a production capacity design for up to 40,000 tonnes
of copper cathode per annum. As a result, this assessment has
become the design basis for the upcoming PEA.
“We remain very excited at the potential to find
additional oxide resource tonnes around the Project, which could
change its scale and mine life in the future. One of the key
benefits of SX-EW processing is the simplicity with which
production can be increased due to the modular nature of the
processing plant.
“Lastly, the PEA is progressing well, despite
the difficulties many businesses faced as a result of Coronavirus.
We are anticipating delivering the results to the market at the end
of June or into early July.”
Marimaca Copper Project Overview
Marimaca Copper released an updated Mineral
Resource Estimate (“MRE”) for Marimaca of 70 million tonnes, with
an average grade of 0.60% copper, within the Measured &
Indicated Categories (approximately 420Kt of contained copper) and
40 million tonnes, with an average grade of 0.52% copper, within
the Inferred Category (approximately 224kt of contained copper)
(refer release on 2 December 2019). This
represents an increase of almost 100% from the MRE released in
April 2018 and makes the Project one of the most significant copper
oxide discoveries in Chile in the last decade.
The Company is currently undertaking a PEA for
the Project, which is anticipated to be completed in the late June
or early July 2020. The Project is expected to benefit from low
upfront capital development costs and, due to the favourable
geometry of the orebody and relatively simple oxide processing
through SX-EW, Management believes the Project will have very
competitive operating costs, delivering compelling economics in the
PEA.
GEM Trade-off Analysis
Marimaca Copper engaged GEM to conduct a
detailed option trade-off and analysis and risk assessment for the
development of the Marimaca Copper Project. The objective of the
work was to identify an optimal development strategy for Marimaca,
but also to provide additional risk-based information to inform
strategic decision making by the Company.
GEM ran multiple scenarios, using deterministic
and stochastic models, to quantify economic outcomes of each
potential development strategy, but also the level of risk
associated with each strategy based on numerous inputs. The
analysis followed a path of first identifying any uncertainties for
the Project as a whole, then quantifying risks to the Project and
finally an assessment of each of the potential strategies available
to the Company.
Following the rigorous analytical processes
undertaken by GEM, it was clear that the best development strategy
was the construction of a full scale, standalone, development of
Marimaca, using an open pit and SX-EW plant with a design basis for
the production of up to 40,000 tonnes of copper cathode per
annum.
Given Marimaca Copper enjoys the strong support
of two large shareholders, and capital is unlikely to be
constrained for a project of the quality of Marimaca, the Company
elected to proceed with the full scale, standalone Marimaca
development as the go-forward strategy.
Qualified Person
The technical information in this news release,
including the information that relates to geology, drilling and
mineralization was prepared under the supervision of, or has been
reviewed by Sergio Rivera, Vice President of Exploration, Marimaca
Copper Corp, a geologist with more than 36 years of experience and
a member of the Colegio de Geologos de Chile and of the Institute
of Mining Engineers of Chile, and who is the Qualified Person for
the purposes of NI 43-101 responsible for the design and execution
of the drilling program.
The independent Qualified Person responsible for
the Mineral Resource Estimate at Marimaca is Luis Oviedo Hannig, a
geologist with more than 41 years of experience at NCL Ingeniería y
Construcción S.A. He is a member of the Colegio de Geologos de
Chile and the Institute of Mining Engineers of Chile and is
registered with the Qualification Commission of Resources and
Mining Reserves (CRISCO, CMC, Membership Number 013). He has a
postgraduate degree in "Certification and Validation of Mining
Assets” from Queens University and PUVC.
The Qualified Person for other contents than
geological information of this news release is Luis Tondo, Chief
Executive Officer and Director of Marimaca Copper Corp, a mining
engineer with more than 30 years of experience and a Fellow of The
Australasian Institute of Mining and Metallurgy, who is the
Qualified Person for the purposes of NI 43-101.
All QPs confirm they have visited the project
area, reviewed relevant project information, allowing the correct
technical judgement in their respective areas of expertise, in turn
used in the writing and reviewing the contents of this news
release.
Gestion y Economia Minera
Limitada
GEM is a Chilean industrial engineering company,
founded in 2008, that advises the mining industry in management,
strategy and economics. It has five main business areas, which
combine its expertise and knowledge with state-of-the-art
analytical techniques and tools, applied to mining including
project evaluation, strategy development, economics, optimization
and training. GEM is part of Codelco’s “Programa de Proveedores de
Clase Mundial” (World-Class Suppliers Program), a technical program
which led to the development of its proprietary mine planning and
decision making software, DeepMine. GEM has successfully delivered
around 300 projects, which have enabled our customers to discover
and capture the maximum value in their decisions.
Marimaca Copper Mining and the Marimaca
Project
Marimaca is fast becoming recognised as one of
the most significant copper discoveries in Chile in recent years as
it represents a new type of deposit which challenges accepted
exploration wisdom in the region. Marimaca is hosted by intrusive
rocks while the numerous manto deposits in the same region are
hosted by volcanics. With a lack of new copper exploration
discoveries in Chile, the growing Marimaca resource is an exciting
development project, situated in the coastal belt at low elevation
close to the major regional centres of Antofagasta and Mejillones.
This prime location could enable its future development at a
relatively modest capital investment. Marimaca will benefit from
nearby existing infrastructure including roads, powerlines, ports,
a sulphuric acid plant, a skilled workforce and seawater.
Contact Information
For further information please visit
www.marimaca.com or contact:
Tavistock
+44 (0) 207 920 3150
Jos Simson/Emily Moss
marimaca@tavistock.co.uk
Forward Looking Statements
This news release includes certain
“forward-looking statements” under applicable Canadian securities
legislation. These statements relate to future events or the
Company’s future performance, business prospects or opportunities.
Forward-looking statements include, but are not limited to, the
impact of a rebranding of the Company, the future development and
exploration potential of the Marimaca Project. Actual future
results may differ materially. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements reflect the beliefs,
opinions and projections on the date the statements are made and
are based upon a number of assumptions and estimates that, while
considered reasonable by Marimaca Copper, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and
unknown, could cause actual results, performance or achievements to
be materially different from the results, performance or
achievements that are or may be expressed or implied by such
forward-looking statements and the parties have made assumptions
and estimates based on or related to many of these factors. Such
factors include, without limitation: risks related to share price
and market conditions, the inherent risks involved in the mining,
exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices, the possibility of
project delays or cost overruns or unanticipated excessive
operating costs and expenses, uncertainties related to the
necessity of financing, the availability of and costs of financing
needed in the future as well as those factors disclosed in the
Company’s documents filed from time to time with the securities
regulators in the Provinces of British Columbia, Alberta,
Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince
Edward Island and Newfoundland and Labrador. Accordingly, readers
should not place undue reliance on forward-looking statements.
Marimaca Copper undertakes no obligation to update publicly or
otherwise revise any forward-looking statements contained herein
whether as a result of new information or future events or
otherwise, except as may be required by law.
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