06:45 | Lima, Jan. 19 (ANDINA).
Canadian-based Candente Copper Corp. said it expects to start production at its 100% owned Cañariaco Norte copper project in the northern department of Lambayeque in 2015, according to a positive Pre-Feasibility Progress Report for its project.
For the base case with year one production anticipated in 2015, the initial copper price is US$2.92 /lb reverting to US$2.25 /lb after year 10; a gold price of US$1,159 /oz reverting to US$1,015 /oz; and a silver price of US$20.96 /oz reverting to US$15.85 /oz.
As of January 2011, AMEC, the company which conducted the report, is applying long term metal prices of US$2.40 /lb copper, US$1,015 /oz gold and US$15.85 /oz silver.
Candente said it will invest a capital cost of US$1.56 billion to develop the mine.
President of Candente Sean Waller said the Cañariaco Norte project is highly leveraged to the price of copper, which offers many advantages.
It is reasonably close to key road and power infrastructure, has a low strip ratio, soft rock, low operating cost, offers excellent potential for discovery of additional resources, and is located in Peru, one of the most favourable countries in the world for mining project development.
Waller said the Cañariaco Norte copper project will see development of a large scale open pit mine utilizing conventional truck and shovel mining.
The mine plan calls for the extraction of 728.2 million tonnes of mineralized material and 713.5 million tonnes of waste over the projected 22 year mine life (strip ratio of 0.98 to 1).
Average life-of-mine head grades to the process plant will be 0.40% copper, 0.067 g/t gold and 1.71 g/t silver. Importantly, the mine grades during the first three years of production will be higher, with average feed grades of 0.48% copper, 0.086 g/t gold and 2.14 g/t silver.
Candente Copper's flagship project is the 100% owned, 7.5 billion pound, pre-feasibility stage Cañariaco Norte Copper Project located in northern Peru's prolific mining district.
The Cañariaco Norte deposit contains a Measured and Indicated resource of 752 million tonnes grading 0.45 % copper, 0.07 g/t gold and 1.90 g/t silver.
(END) LVT/LVT
Publicado: 19/1/2011