(All amounts in US$ unless otherwise indicated)
VANCOUVER, British Columbia–BUSINESS WIRE–
Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) (ASX:CSC) today announced the results of an updated feasibility study (“FS”) for its 100%-owned, fully-permitted Santo Domingo copper-iron-gold project (“Santo Domingo” or the “Project”) in Region III, Chile, located 35 kilometres northeast of its 70%-owned Mantoverde mine.
“The release of the updated feasibility study for our Santo Domingo Project marks a major step towards the creation of a world-class district in the Atacama region of Chile. We have optimized the mine plan, updated the capital and operating cost estimates, and incorporated all experience gained throughout the engineering and construction of our nearby Mantoverde Development Project”, John MacKenzie, Capstone’s Chief Executive Officer, commented. “The 2024 feasibility study significantly enhances the mine’s economics backed by low capital intensity and first quartile costs. A construction decision and the integration of Santo Domingo represents the next phase of our transformational growth as we become a leading long-life and low-cost producer of critical metals essential for the world’s decarbonization efforts. We now intend to progress with the assessment of the optimal financing structure for the project, which may include bringing in a minority partner at the project level. In parallel we will also continue to advance the detailed engineering on the project. Our team is committed to pursuing the highest standards in safety and environmental management as well as continued engagement with all stakeholders as we progress our growth plans.”
2024 SANTO DOMINGO FEASIBILITY STUDY SUMMARY
- The 2024 FS outlines a robust copper-iron-gold project with an after-tax net present value at an 8% discount rate (“NPV8%“) of $1.7 billion and an after-tax internal rate of return (“IRR”) of 24.1%
- Over the first seven years of the mine plan, production is expected to average 106,000 tonnes of copper and 3.7 million tonnes of iron concentrate at first quartile cash costs of $0.28 per payable pound of copper produced
- Over the Project’s 19-year mine life, production is expected to average 68,000 tonnes of copper and 3.6 million tonnes of iron concentrate at first quartile cash costs of $0.33 per payable pound of copper produced
- Total initial capital cost of $2.3 billion drives a capital intensity of approximately $21,900 per tonne of annual copper equivalent production over the life of mine
- A 19-year mine life is supported by a higher Mineral Reserve1 estimate of 436 million tonnes at a copper grade of 0.33%, iron ore grade of 26.5%, and a gold grade of 0.05 grams per tonne
- Mineral Reserve tonnes have increased by 11% while contained copper has increased by 23% since the 2020 Feasibility Study
- Total Measured and Indicated (“M&I”) Mineral Resources of 547 million tonnes at a copper grade of 0.31% and a gold grade of 0.04 grams per tonne, including 506 million tonnes with an iron grade of 25.8%
- M&I Resource tonnes increased by 2% while contained copper in M&I Resources increased by 6% since the 2020 Feasibility Study
- The Company plans to progress several value enhancement initiatives within the Mantoverde-Santo Domingo (“MV-SD”) district that are noted in the Opportunities section but not yet incorporated into the base case 2024 FS, including:
- The processing of Santo Domingo’s oxide material using Mantoverde’s excess SX-EW capacity
- The recovery of cobalt and additional copper from a pyrite concentrate
- Ongoing exploration of the MV-SD district, including the recently acquired Sierra Norte deposit
For a virtual tour of Santo Domingo and the MV-SD district, please visit: https://youtu.be/n-FyVJ9t2JE
1 Comprised of 131 million tonnes in the Proven category and 305 million tonnes in the Probable category. Please refer to the detailed breakdown of the Santo Domingo Mineral Reserve estimate below.
SUMMARY OF RESULTS
The 2024 FS reflects the results of the Company’s further technical and optimization work at Santo Domingo. A summary of key financial, production, cost, and operating details from the 2024 FS can be found below, in addition to a comparison to the previous Feasibility Study published in 2020.
