Marimaca Copper (ASX:MC2) has unveiled its namesake oxide deposit in Chile as an “attractive” copper development opportunity after receiving results from a Definitive Feasibility Study (DFS).
The DFS demonstrated that the Marimaca Oxide deposit observes a nominal 50,000 tonnes per year copper cathode production target for a 13-year reserve life.
Marimaca has a pre-production capital cost and capital intensity of US$587 million ($905.48 million) and US$11,700 per tonne of copper production capacity, respectively. The company says these results position the deposit as one of the lowest capital cost and intensity development stage copper projects globally.
The DFS also shows the project has robust forecast economics, with a post-tax net present value of US$709 million and an internal rate of return of 31% using a long-term copper price of US$4.30 per pound.
CEO Hayden Locke says the company has quoted all material equipment from reputable providers to ensure long-term reliability and operability.
“The company believes there is an opportunity to further optimise the capital cost by utilising a hybrid contracting strategy,” Locke says.
“The multi-pronged strategy of Marimaca remains to bring the MOD into production as quickly as is feasible, while continuing to progress our pipeline of projects, at various stages of mutiny, in parallel.”
Locke notes this will include further technical work with the aim of increasing the potential production capacity to over 70,000n tonnes per year of copper cathode within the next five years.
The company is currently conducting debt financing workstreams, with advisors and technical experts engaged. Marimaca aims to identify preferred financing partners by the end of 2025.
The Marimaca deposit, located in Antofagasta, Chile, has a maiden proven and probable mineral reserves of 178.6 million tonnes @ 0.42% copper for 750,000 tonnes of contained copper.
Marimaca is an emerging dual-listed company focused on copper discoveries in Chile.
Write to Aaliyah Rogan at Mining.com.au
Images: Marimaca Copper
