Pilbara-based polymetals miner Develop Global (ASX:DVP) has expanded the MRE for its Woodlawn mine by 11% to 11Mt of ore at 1.8% copper and 5.8% zinc.
This increase – in the measured & indicated resource categories – comes ahead of an “imminent reserve update” and a new mine plan.
That mine plan, Develop reported on Friday, will precede a move to FID on a production re-start at Woodlawn – effectively seeing Develop head back to the Pilbara to recommence operations.
The increase means the company can now produce some 190Kt of copper and 650Kt of zinc.
The production re-start news comes as copper prices have seen some upward movement – though, recent gains have pared off throughout the week. Management also pointed towards this macro trend.
China has reportedly ordered a recent curb on copper smelter output within the country at the same time the market appears to have “priced in” a depressed Chinese economy, visible in the iron ore price.
At any rate, Develop says it can now justify a 7 year mine life stretching out to a 10Y LOM based on existing throughput load of 850Ktpa.
Ongoing inventory growth is likely to be strategically targeted by the company, with a further reserve update set for the “coming weeks.”
“This expanded and upgraded Resource is a pivotal outcome for Woodlawn because it will drive the imminent Reserve update. This will in turn underpin Woodlawn’s economics and position Develop to secure the most attractive source of project funding,” Develop chief Bill Beament said.
“With the copper price rising and widely forecast to increase much further, the Woodlawn inventory, short time frame to production and strong growth outlook means Develop offers investors much sought-after ASX-listed exposure to the metal”.
DVP was down -0.83% to $2.38 on Friday.