Hudbay delivers robust PEA for its Mason copper project in Nevada
(Kitco News) - Hudbay Minerals (TSX, NYSE: HBM) today announced positive results of its preliminary economic assessment (“PEA”) for its 100%-owned Mason copper project located in Nevada, United States.
According to the company’s statement, the 2021 Mason PEA contemplates a 27-year mine life with average annual copper production of approximately 140,000 tonnes over the first ten years of full production.
At a copper price of $3.10 per pound, the after-tax net present value using a 10% discount rate is $519 million and the internal rate of return is 13.7%. The valuation metrics are highly sensitive to the copper price and at a price of $3.25 per pound, the after-tax net present value using a 10% discount rate increases to $773 million and the internal rate of return increases to 15.4%.
The Mason deposit is a large tonnage, copper-molybdenum deposit and is planned to be a traditional open pit shovel/truck operation with a copper sulphide mineral processing plant producing commercial grade copper and molybdenum concentrate. The plant is designed to operate at a throughput rate of 120,000 tonnes per day.
The company said that Mason has the potential to more than double Hudbay’s current copper production levels, and if brought into production, Mason is expected to become the third largest copper mine in the United States.
The mine plan includes 1.1 billion tonnes at 0.34% copper-equivalent, 98% of which is from the measured and indicated categories. Mason’s 2.2 billion tonne measured and indicated resource estimate is one of the largest greenfield copper projects in the Americas.
Hudbay (TSX, NYSE: HBM) is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States).