The Scoping Study reflects a staged mining and processing operation to minimise start-up capital requirements and prioritise early cash flow:
- Stage 1: an open-cut mine at Onedin, with material to be processed via heap leaching to produce copper cathode and zinc sulphate monohydrate; and
- Stage 2: an underground mine at Sandiego, with material to be treated in a flotation plant to produce separate copper and zinc concentrates.
Key outcomes of the Study:
- 10.5 year project life
- Pre-tax NPV 8% (real) of A$172m
- Pre-tax Internal Rate of Return of 28%
- Start-up Capex of A$73m
CEO, Andrew Tong, commented: “This is a fresh, modern look at an undeveloped project. COB believes that the Halls Creek Project can be developed for a moderate investment to profitably produce copper and zinc which are forecast to be in high demand in the coming decade. While remaining focused on the Kwinana Cobalt Refinery, we are thrilled to have acquired a robust project to potentially deliver near-term value to our shareholders.”
Full details are included in the ASX announcement link below.