Commodities
Home›Commodities›Energy›Sandfire adds Lowry deposit to Black Butte copper mine…
Sandfire adds Lowry deposit to Black Butte copper mine plan
The updated preliminary feasibility study estimates after-tax NPV of $126 million, with initial costs of $474 million.
Mining.com reports Sandfire Resources America has updated its preliminary feasibility study for the Black Butte copper project in Montana, adding the Lowry deposit to extend the mine plan.
The study estimates probable reserves of 14.3 million tonnes grading 2.6% copper, for 370,000 tonnes of contained red metal, and calculates an after-tax net present value of $126 million discounted at 8%. It also projects an internal rate of return of 13.3% alongside initial costs of $474 million.
Sandfire said the Lowry deposit, located about 2 km from the main Johnny Lee deposit, supports a longer 12-year mine life, extending beyond an earlier eight-year estimate. The company also estimated that incorporating mechanized long-hole stoping at Lowry could lower unit operating costs by $2.28 to $68.30 per tonne.
Based on a copper price of $4.70 per lb., the updated plan could generate $3.3 billion in gross revenue and $476 million in post-tax cash flow over the mine life, representing a 34% increase versus the previous study. Sandfire shares fell 2% to 20 cents in Toronto on Thursday morning, valuing the company at C$204.6 million.
Latest closeCopper $6.130 ▼0.7%