Live Webinar and Q&A today, Marimaca Project PEA Results: US$524 million post-tax real NPV8 and 33.5% IRR
September 09 2020 - 7:00AM
Marimaca Copper Corp. (“Marimaca Copper” or the “Company”)
(TSX: MARI) is pleased to announce it will host a webinar
following the release of its Preliminary Economic Assessment
(“PEA”) for the Company’s flagship Marimaca Copper Project
(“Marimaca” or “the Project”), located in northern Chile, today 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 InformationFor further information
please visit www.marimaca.com or contact:
Tavistock +44 (0) 207 920
3150Jos Simson/Emily Mossmarimaca@tavistock.co.uk
Notes to EditorsMarimaca 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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