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- Study delivers compelling economic outcomes
- Average annual free cash flow from first production estimated at $110M
- Mining production of 51.4Mt of process plant feed from single open pit
- Total production of 210,000 tonnes of CuEq in concentrate
Stavely Minerals (ASX:SVY) has completed a robust Scoping Study on potential production from the Thursday’s gossan and cayley lode copper-gold-silver deposits, part of the company’s 100%-owned Stavely project in western Victoria.
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The project development envisages a standalone conventional process plant with a front-end crushing and grinding circuit and back-end sulphide flotation cells with an annual throughput capacity of 4.0 million tonnes per annum (Mtpa).
The Thursday’s gossan Scoping Study is based on a mineral resource estimate (MRE) of 59 million tonnes (Mt) at 0.58% copper equivalent (CuEq).
The Scoping Study delivered compelling financial outcomes, including:
o Estimated pre-tax NPV7 of $818 million;
o Estimated pre-tax IRR of 40%;
o Projected capital payback in 2.5 years of production;
o Average annual free cashflow from first production estimatedm at$110 million;
o Net cashflow from operations estimated to be $1.4 billion;and
o Life-of-mine estimated AISC of US$3.76/lb copper equivalent and first three-years AISC of US$2.75/lb copper equivalent.
The Scoping Study includes an estimated $333 million capital cost for the process plant and mine-site infrastructure post-FID, inclusive of a 30% contingency, together with an additional $139 million estimated for pre-production operations, including open pit pre- stripping.
The study envisages a conventional standalone on-site processing plant with a front-end crushing and grinding circuit and back-end sulphide flotation cells, concentrate thickening and drying with an annual throughput capacity of 4.0 million tonnes per annum (Mtpa).
Transport of concentrate will be undertaken in shipping containers by road 150km to the deep- water port of Portland for export.
SVY is down 3.13% to 1.6¢. Mkt cap $16.52M.
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