The True North Copper (ASX:TNC) board has officially given its tick of approval for the company’s mining restart plan for its Cloncurry Copper Project in Queensland.
True North says it expects to reveal its finalised mine plans, alongside details on project economics, upon the completion of an updated Great Australia Mine reserve and the maiden Wallace North reserve in early 2024.
As part of progressing the mining restart, the $58.39 million market capitalisation company will also execute a Cloncurry sulphide ore processing and offtake agreement and secure project finance and environmental bond facility to support the restart.
The company will then engage with mining contractors and begin mining operations at the project.
True North Copper Managing Director Marty Costello says over the last 6 months, the company has reached a point where its board team can ‘confidently’ commit to restart mining at Cloncurry.
“As shown in the initial Great Australia Mine reserve announcement, the fully permitted project presents an opportunity for a low capital expenditure and cash-generative opportunity.
We also plan to reinvest expected free cashflows into the further exploration and development of what we believe to be one of Australia’s most promising critical mineral copper projects — the Mt Oxide Project.”
“As shown in the initial Great Australia Mine reserve announcement, the fully permitted project presents an opportunity for a low capital expenditure and cash-generative opportunity”
True North notes that recent exploration and development outcomes across its Great Australia Mine and the Wallace North areas resulted in the decision to combine both projects as part of the mine plan going forward.
As previously reported, True North returned ‘exceptional’ advanced grade control drilling results at Wallace North, including multiple ‘high-grade’ gold and copper zones.
True North Copper is a copper, cobalt, and critical minerals-focused mining company based in Cairns. The company is focused on its Cloncurry and Mt Oxide projects, which lie in north-west Queensland.
As of 30 September 2023, the company had $789,000 cash and cash equivalents at hand and $2 million in unused finance facilities, according to its latest quarterly report. On 17 November, True North announced it was conducting a placement to raise $15 million.
Write to Aaliyah Rogan at Mining.com.au
Images: True North Copper
