Live Webinar and Q&A Marimaca Project PEA Results: US$524 million post-tax real NPV8 and 33.5% IRR
September 03 2020 - 7:30AM
Marimaca Copper Corp. (“Marimaca Copper” or the “Company”)
(TSX: MARI) is pleased to announce it will host a webinar
following the release of its PEA for the Company’s flagship
Marimaca Copper Project (“Marimaca” or “the Project”), located in
northern Chile, on Wednesday, September 9, 2020 at 8:00 a.m.
Pacific, 11:00 a.m. Eastern, 4:00 p.m. UK, 5:00 p.m. CET.
The webinar will include a question and answer
session following the presentation. Questions can be submitted
through the webinar platform, or via email to
marimaca@tavistock.co.uk no later than two hours prior to the
scheduled start time.
A recording of the webinar, including the
presentation slides, will be made available on the Company’s
website at www.marimaca.com following the event.
Webinar link details below:
Webinar Link
Exceptional PEA Results for the Marimaca
Project including US$524 million post-tax real NPV8 and 33.5%
IRR
Highlights from the PEA
Results
- US$524 million post-tax NPV8 (real) assuming a US$3.15/lb flat
long-term copper price- Payback of 2.6 years- Post-tax IRR of
33.5%
- US$640 million post-tax NPV8 (real) assuming a US$3.45/lb flat
long-term copper price- Payback of 2.4 years- Post-tax
IRR of 38.0%
- Average annual steady state EBITDA of US$169 million
- Pre-production capital cost of US$285
million- Capital intensity of US$7,125/tonne
of copper production capacity- Assumes mining fleet is
purchased via lease to own to minimize upfront capital costs
- Profitability Index (NPV/Capex) of 1.8x
- Life of mine average all-in-sustaining cash costs of US$1.29/lb
of copper1- Life of mine average C1 Cash Costs of US$1.22/lb
of copper2
- Conventional open pit mining focused exclusively on oxide
mineralization- Life of mine stripping ratio of
0.84:1- Highest grade feed materials available in first five
years of production resulting in improved payback and overall
economics
- Conventional heap leach, SX-EW, processing
circuit- Projected average life of mine metallurgical
recoveries in heap leach of approximately 76% of total copper
supported by data from several metallurgical testing
programs- Process makes use of readily available sea
water
- Average annual steady state copper production over first 6 yrs
of close to 40,000 tonnes of cathode- Total mine life of 12
years- Total recovered copper of approximately 430,000 tonnes
over the life of mine
- Significant ongoing exploration potential for both oxide and
sulphide mineralization which could substantially extend the mine
life of the Project
Luis Tondo, CEO of Marimaca Copper
commented:
“The exceptional results of the PEA have
confirmed our belief that Marimaca is a development stage copper
project of the highest quality. Its pre-production capital costs
places it in the very lowest tranche of projects in the copper
development space, while its low operating costs, which places it
in the bottom quartile of operating copper mines globally, means
that the project will be profitable even in lower copper price
environments.
“The Marimaca Project is substantially more
de-risked than a typical PEA level project due, primarily, to the
significant amount of technical work we have already completed,
which includes four phases of metallurgical testing, geotechnical
studies, nearly 100,000 metres of drilling over the Project and
engagement with various input providers for the Project.
“In a commodity which is dominated by large,
technically challenging projects in difficult jurisdictions, that
carry with them a level of development and operating risk
commensurate with their size and complexity, Marimaca represents a
copper development project at the other end of the spectrum.
Marimaca is a project, located in a tier 1 mining jurisdiction,
that can be both financed and built with lower levels of execution
risk, and which provides a platform for Marimaca Copper to become a
mid-tier copper producer in the future.”
For further details, and to read the full PEA results for the
Marimaca Copper Project, please refer to the announcement released
August 4, 2020, which can be accessed via Marimaca’s website.
Contact Information
For further information please visit
www.marimaca.com or contact:
Tavistock +44 (0) 207 920
3150Jos Simson/Emily Mossmarimaca@tavistock.co.uk
Notes to Editors
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 and promises to open up new frontiers for
discoveries elsewhere in the country. 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
a high-profile development project as it is situated in the coastal
belt at low elevation close to 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.
______________________________
1 All in sustaining costs is defined as cash
cost (C1) plus general and administrative expenses, sustaining
capital expenditure, deferred stripping, royalties and lease
payments and is used by management to evaluate performance
inclusive of sustaining expenditure required to maintain current
production levels.2 C1 cash cost includes all mining and processing
costs less any profits from by-products and is used by management
to arrive at an approximated cost of finished metal.
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