Updated NI 43-101 for Marimaca Copper Project
September 21 2020 - 7:53AM
Marimaca Copper Corp.
(“Marimaca Copper” or the
“Company”) (TSX: MARI)
is pleased to announce the filing, on SEDAR, of an updated National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”) Technical Report dated September
18, 2020, for the Company’s flagship Marimaca Copper Project
(“Marimaca” or “the Project”), located in northern Chile.
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
________________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.
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.
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