29Metals (ASX:29M) has nearly completed its plan for the safe return to mining and mineral processing operation at the Capricorn Copper Mine in Queensland, following an ‘extreme’ weather event in March.
The company reports previous estimates for the return to operations were based on the reinstatement of the WTP electrical components with an expected lead time of 3 to 4 months. With the results of further inspections, the company now considers managing water quality, reducing the volume of water onsite starting to the levels achieved before the current wet season began as the key drivers for a safe return to operations.
Other considerations include remediation or replacement of damaged site facilities and infrastructure including water management, as well as dewatering and progressive rehabilitation of the Esperanza South (ESS) underground mine.
29Metals reports it has evaluated multiple recovery scenarios, and notes while the recovery plan is not yet final, the safe return operations will likely involve a phased approach.
The company expected an initial reinstatement of operations with combination of ore mined from the Mammoth and Greenstone ore sources will be completed as phase one from the middle of the September quarter, while phase two will consist of a complete reinstatement and restart of mining in ESS, as well as ramping up mill rates from the middle of the first half of 2024.
29Metals says it will be working closely with external stakeholders, including the Queensland Department of Environment and Science (DES) regarding the recovery plan. The company also notes engagement with the DES during and following the ‘extreme’ weather event has been consistently positive.
“With water levels onsite now stabilised, the recovery task has become clearer”
Commenting on the recovery plan, 29Metals Chief Executive Officer (CEO) and Managing Director, Peter Albert says: “Substantial effort has gone into ensuring that we properly understand the full impact of this unprecedented weather event and implement a responsible plan for the safe return to operations.
With water levels onsite now stabilised, the recovery task has become clearer. Water quality and reducing the additional water brought onto site by this event are the key enablers to recovery.
We have closely considered a number of scenarios, and a staged return to operations is expected to deliver the best outcome, overall, for our shareholders and other stakeholders.”
As part of the recovery planning period, 29Metals reports it is closely monitoring and managing costs. As previously reported, the company has issued force majeure notices under major contracts and is working closely with its key contractor to mitigate costs.
The company is also examining opportunities to improve Capricorn’s operating and financial profile, including improvements to operation efficiency and productivity, while also investigating opportunities to accelerate phase two of the recovery.
29Metals is an ASX-listed copper-focused base and precious metals mining company that currently holds the Golden Grove Mine in Western Australia, the Capricorn Copper Mine in Queensland, and the Redhill Project in Chile.
Images: 29Metals Ltd
