Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has re-optimised the scoping study for the Nifty Surface Mine, materially improving the project’s economics with a strong reduction in waste ore from previous estimates.
The company achieved a reduction in ‘concentrator-only’ strip ratios by 25%, reducing the waste-to-ore ratio to 7.3:1 compared to previous assumptions of 9.7:1 and also improving the pit shell designs for the mine itself.
“The updated mine optimisation is a material development for Cyprium and is a result of following a thoughtful mine development sequence from end-to-end,” said Cyprium Metals executive chair Matt Fifield.
“A number of positive outcomes: better economics, reduced footprint and importantly the ability to continue to generate revenue from the cathode plant throughout the life of the surface mine.
“We are incorporating these wins into our restart planning and pre-feasibility study (PFS) work now.”
Better economics, longer life
CYM engaged technical partner MEC Mining to review its recent scoping study as well as employing a geotechnical analysis of all historical drilling and testing data.
The review revealed potential for material pit shell improvements with the significant bonus of preserving existing solvent extraction-electrowinning (SX-EW) infrastructure over the expected life of heap leach operations.
“This new geotech information highlights the potential for material cost reduction by using steeper wall angles that mirror the natural bedding planes of the shales that overlay the Nifty sulphide orebody,” Cyprium chief operating officer Colin Mackey said.
“The smaller footprint lessens the total material movements, increases the speed to first ore, and improves overall site interactions and operational flexibility given the extended preservation of SX-EW infrastructure.”
With both concentrator and cathode ore feeds taken into consideration, Nifty’s overall pit strip ratio falls to 6.3:1, increasing the mine’s life to over 20 years.
Preserving existing cathode plant
“One of development sequencing trade-offs we have been thinking through in the background is the interaction between the surface mine and the cathode plant,” said Fifield.
“Previously, this meant that while the cathode restart was low complexity and likely very profitable, it also had an uncertain life depending on Cyprium’s ability to progress the new surface mine quickly.
“Now, the benefit of having a refurbished cathode plant is available for a far longer time.”
The upcoming PFS will assess the potential of additional cathode production from delivery of oxide ore from the new surface mine, in conjunction with planned retreatment of materials on existing heap leach pads.
“Nifty’s sulphide resource remains Cyprium’s largest value driver,” said Fifield, “and the more we work on it, the better it gets.
“With a lower strip ratio and full utilisation of the cathode plant, we expect that the previously announced positive economics of the May 2024 Scoping Study will become even more attractive.
“We are pleased about sharing these positive announcements – the team’s diligent work on restart planning continues to improve the economic potential and speed to market.
“We look forward to providing shareholders with additional information on our execution strategy in the near future.”