(All amounts in US$ unless otherwise indicated)
VANCOUVER, British Columbia--BUSINESS WIRE--
Capstone Copper Corp. ("Capstone" or the "Company") (TSX:CS) (ASX:CSC) today announced the results of a feasibility study ("FS") for its Mantoverde Optimized brownfield expansion project ("MV Optimized" or "MV-O").
John MacKenzie, Capstone's Chief Executive Officer, commented, "We are excited to release the results of our MV Optimized Feasibility Study which, when combined with our recently released Santo Domingo Feasibility Study, defines the next phase of transformational growth for Capstone. MV Optimized is a capital efficient, high return and low risk expansion project that is expected to bring on an additional 20,000 tonnes per annum of copper for approximately $146 million of capital. We see the MV-SD district producing approximately 250,000 tonnes of copper per annum, placing it amongst the largest producing copper districts in the world, with very attractive unit cash costs. Between MV Optimized and Santo Domingo, we expect to have significant optionality to surface further value, including through exploration drilling which has not been performed at Mantoverde since 2019. Our team is committed to pursuing the highest standards in safety and environmental management as well as continued engagement with all stakeholders as we progress our growth plans. The ramp up of the current Mantoverde Development Project continues to progress well and I am thrilled that the plant achieved commercial production in September."
MANTOVERDE OPERATION SUMMARY
Mantoverde (70%-owned by Capstone Copper and 30%-owned by Mitsubishi Materials Corporation) is an open-pit copper-gold mine located in the Atacama region of Chile. Since the 1990s, Mantoverde operated as an oxide mine producing copper cathodes from its 60,000 tonnes per annum capacity SX-EW plant. Last year in 2023, Capstone Copper completed construction of the Mantoverde Development Project ("MVDP") that enabled the mine to process its copper sulphide reserves, in addition to existing oxide reserves. The MVDP involved the addition of a sulphide concentrator (nominal 32,000 ore tonnes per day ("tpd")) and tailings storage facility, and the expansion of the existing desalination plant and other minor infrastructure. First saleable copper concentrate at MVDP was produced in June 2024 and commercial production was achieved in September 2024. Commercial production is defined as the achievement of reaching a minimum of 30 consecutive days of operations during which the mill operated at an average of 75% of nameplate throughput of 32,000 tpd.
MANTOVERDE OPTIMIZED FEASIBILITY STUDY
MV OPTIMIZED HIGHLIGHTS
- MV Optimized is a capital efficient debottlenecking expansion of the existing sulphide concentrator from throughput of 32 ktpd to 45 ktpd
- An extended 25-year mine life is supported by a higher sulphide Mineral Reserve1 estimate of 398 million tonnes at a copper grade of 0.49% and a gold grade of 0.10 grams per tonne
- Sulphide Mineral Reserve tonnes have increased by 68% while contained copper has increased by 40%
- The updated oxide Mineral Reserve2 estimate is 236 million tonnes at a soluble copper grade of 0.21%
- Oxide Mineral Reserve tonnes have increased by 18% while contained copper has increased by 11%
- Expansionary capital of $146 million yields total incremental production of 368,000 tonnes of copper and 215,000 ounces of gold compared to the previous technical report, reflecting a capital intensity of approximately $7,500 per tonne of incremental annual copper equivalent production
- Over the next five years, annual production from Mantoverde is expected to average 135,000 tonnes of copper and 37,000 ounces of gold at attractive C1 cash costs of $1.81 per payable pound of copper produced
- Over the 25-year mine life, production is expected to average 81,000 tonnes of copper and 32,000 ounces of gold at robust C1 cash costs of $2.04 per payable pound of copper produced
- MV Optimized outlines an after-tax net present value at an 8% discount rate ("NPV8%") of $2.9 billion for the Mantoverde operation on a 100%-basis based on a $4.10/lb long-term copper price assumption
- Capstone plans to begin construction of MV Optimized following acceptance of its environmental DIA permit application and subject to Board approvals. The DIA permit application was submitted in H1 2024 and approval is expected in H1 2025
- The Company plans to progress several value enhancement initiatives within the Mantoverde-Santo Domingo ("MV-SD") district, noted in the Opportunities section but not yet incorporated into the base case MV Optimized plan, including:
- Processing of oxide material from Capstone's neighbouring Santo Domingo and Sierra Norte projects using Mantoverde's excess SX-EW capacity
- Recovery of cobalt and additional copper from a pyrite concentrate
- Ongoing exploration of the MV-SD district, including the recently acquired Sierra Norte deposit
A summary of key production and cost details for MV Optimized can be found below.
