Copper Fox 'very pleased' with PEA results for Schaft Creek
(Kitco News) - Copper Fox (TSXV: CUU) today announced the results of a preliminary economic assessment ("PEA") for the Schaft Creek copper-molybdenum-gold-silver porphyry deposit located in Tahltan Territory in northwestern British Columbia.
According to the company’s statement, the project, owned 75% by Teck and 25% by Copper Fox, is expected to generate a pre-tax NPV of US$1.4 billion and IRR of 15.2%, with the after-tax NPV and IRR of US$842.1 million and 12.9%, respectively.
According to the study, a payback of initial capital is expected to be achieved in 4.8 years from commencement of operations. Average annual EBITDA is expected to be US$695.4 million based on first 5 years at full production, and US$10.8 billion during Life of Mine ("LOM").
The company added that the PEA assumes a 21-year LOM for the project producing approximately 5.0 billion pounds or 2.3 million tonnes of copper, 3.7 million ounces of gold, 226.0 million pounds of molybdenum and 16.4 million ounces of silver in concentrate.
Mining of the Schaft Creek deposit is planned as a conventional truck-shovel open-pit mining operation. The company said that the 21-year mine plan utilizes approximately 60% of the mineral resource base and provides options to extend mine life and/or increases in throughput.
The company noted that estimated initial capital costs are US$2.653 billion, not including sustaining capital costs of US$848.7 million which is inclusive of US$154.0 million closure costs, with operating costs estimated to be US$8.66/t processed.
President and CEO Elmer B. Stewart stated, "We are very pleased with the results of the PEA and the recommended program work of C$23 million that could be considered by the operator to advance the Schaft Creek project to the pre-feasibility study stage of study and evaluation. The significantly higher investment returns, resulting in part from project enhancements developed over the past 2 years, and remaining resources in the deposit on completion of the first 21 years of mining, provides a compelling view of the Schaft Creek project's financial potential."