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(Kitco News) - Surge Copper (TSXV: SURG) yesterday announced the results of its preliminary economic assessment (PEA) for the Berg project located in central British Columbia. The company is currently earning a 70% interest in the project from Centerra Gold.
In a statement, Surge Copper highlighted the project's base case after-tax NPV8% of C$2.1 billion and IRR of 20% based on long-term commodity price assumptions of US$4.00/lb copper, US$15.00/lb molybdenum, US$23/oz silver, and US$1,800/oz. Life of mine C1 co-product cash cost is US$1.75/lb payable CuEq and by-product cash cost of US$0.46/lb payable Cu.
The open pit mine project has a 30-year mine life with total payable production of 5.8 billion pounds (2.6 million tonnes) of copper equivalent (CuEq), including 3.7 billion pounds (1.7 million tonnes) of copper.
Updated mineral resource estimate includes combined measured and indicated resource of 1.0 billion tonnes grading 0.23% copper, 0.03% molybdenum, 4.6 g/t silver, and 0.02 g/t gold, containing 5.1 billion pounds of copper, 633 million pounds of molybdenum, 150 million ounces of silver, and 744 thousand ounces of gold, plus an additional 0.5 billion tonnes of material in the inferred category.
During the first 10 years of steady-state production, the project's PEA envisages annual payable production of 220 million pounds (100 kilotonnes) of copper equivalent including 151 million pounds (69 kilotonnes) of copper, with life of mine annual payable production of 191 million pounds (87 kilotonnes) of copper equivalent including 121 million pounds (55 kilotonnes) of copper.
The company also noted that simple project design includes a single open pit, overland conveyor system, concentrator process plant and tailings and waste management facility, and ties into existing infrastructure including roads and hydroelectric gridpower.
"The Berg project now represents one of the largest primary copper development projects in Canada. Given the significant multi-decade production volumes of both copper and molybdenum, and the fact that most primary copper development projects globally are copper-gold or copper-cobalt, we believe Berg is well positioned as one of the most robust copper-molybdenum development projects globally,” the company said.
Surge added the company plans to advance the Berg project toward pre-feasibility while continuing to explore the surrounding district, which it believes has "significant untapped exploration potential” and the ability to grow from what is already one of the largest copper districts in Canada.
Surge Copper is a Canadian company that is advancing an emerging critical metals district in British Columbia, Canada. The company controls a large, contiguous mineral claim package that hosts multiple advanced porphyry deposits with pit-constrained NI 43-101 compliant resources of copper, molybdenum, gold, and silver.
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