A preliminary pit optimisation study for the Big One deposit, which is part of Castillo Copper Ltd (ASX:CCZ, LSE:CCZ)’s NWQ Copper Project in Queensland — has delivered an A$28 million net present value (NPV).
The new study from Entech Group focuses on the near-surface component of known mineralisation at Big One (which hosts a 2.1-million-tonne inferred resource, grading 1.1 copper for 21,886 tonnes of metal) and boosts confidence in the viability of a standalone mining operation.
Study says
Key findings indicate an initially optimised pit shell at Big One could potentially deliver up to 6,266 tonnes of copper, 4,362 ounces of silver and 1,469 tonnes of cobalt.
However, this is just the beginning for Big One: because the copper deposit’s mineralised envelope is open to the southwest and down-dip from the pit shell, there’s scope to build on the early-stage findings and advance a mining license once CCZ brings a strategic development partner on board.
Looking at the broader NWQ Project, there are more than 20 incremental copper, gold, lead and zinc prospects waiting in the wings. These highly prospective targets could be foundational to future satellite deposits and a copper mining operation.
Why the optimisation?
In a nutshell, open pit optimisation involves selecting the most profitable open pit shell that matches a group’s risk profile.
Risk can be managed using a variety of methods, such as using a conservative commodity price, increasing the profit margin or by selecting a smaller pit than the one that generates the maximum value.
Despite optimisation results generating larger NPV pit shells, CCZ has honed in on selection criteria that will help it maintain a more generous monthly net cash flow.
Castillo Copper chairman Ged Hall said: “The board is delighted with the findings from Entech’s preliminary pit optimisation study, as it provides significant confidence a standalone mining operation can potentially be developed at Big One deposit.
“More importantly, the board believes the study’s insights will be key to securing a strategic partner to progress critical development work moving forward.”
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