True North Copper (ASX:TNC) has started mining the Wallace North deposit, part of its Cloncurry Copper Project (CCP) in Queensland.
Clearing activities and blast hole drilling is underway.
Wallace North is one of four open pit deposits at the CCP and hosts a reserve of 700,000 tonnes @ 1.01% copper and 0.46 grams per tonne (g/t) gold for 6,800 tonnes of copper and 10,000 ounces of gold.
Newly appointed Managing Director Bevan Jones, who replaces Marty Costello as of today, says the start of mining at Wallace North will allow the CCP to restart copper production.
“This has been our major goal since listing on the ASX,” he says.
The CCP is forecast to generate free cash flow of around $200 million at current copper spot prices over its initial 4.6-year mine life, based on existing reserves.
Copper is currently fetching around US$4.38 ($6.57) a pound.
Jones says cash flow from mining will be used to explore further opportunities to build the resources and reserves further.
Mining ramp-up will initially build ore stockpiles, with road haulage expected to start within a few weeks of startup.
True North has binding offtake and toll milling agreements with Glencore International AG for 100% of the copper concentrate produced from the CCP and for toll milling of up to 1 million tonnes of ore each year.
Oxide ore will be transported by road train to the Cloncurry Operations Hub for heap leaching, while the sulphide ore will be transported to a nearby concentrator for toll treatment under the agreement with Glencore International.
The hub is located 2km from Cloncurry in northern Queensland and will service all four deposits at the project.
True North has made recent executive changes to better position itself for the restart of production.
Write to Angela East at Mining.com.au
Images: True North Copper
