Energy
Rio2 Unveils $1 Billion Peru Copper-Gold Mine Upgrade
The miner has significantly upgraded the outlook for its Condestable copper-gold mine in Peru, extending mine life to 2039 and boosting projected after-tax free cash flow to US$1.15 billion, just months after completing the acquisition.
Rio2 Limited has announced a major resource and economic upgrade for its condensable copper-gold mine in Peru, just a few months after completing the acquisition of the asset.
The updated report extends the mine’s life to 14 years through 2039. The project has an estimated after tax net present value of US$710 million and is expected to generate about US$1.15 billion in after tax cash free flow.
Resource Estimate Increased
Updated resource estimates for the Raúl and Condestable areas were updated to 82.1 million tonnes grading 0.69% copper, 0.13 grams per tonne gold and 4.12 grams per tonne silver. It is composed of 565,000t copper, 355,000oz gold and 10.87Moz silver at that mean price.
This increased the inferred catergory to 22.2 million tonnes with grades of 0.76% copper, 0.09 grams per tonne gold and 2.78 grams per tonne silver
Production and Expansion Plans
The operation is projected to forecast an average of 18,000 tonnes of copper concentrate per year. It is also expected to generate an annual output of 12,900 ounces gold and 304,800 ounces silver.
Rio2 is estimating life-of-mine all-in sustaining costs of US$1.46 per pound copper.
Andrew Cox, Rio2’s president and chief executive officer, said the company is currently carrying out studies for expanding the production expected from Condestable.
Rio2 is expecting a blessed allowance during the third division of this year to alter the mine’s Environmental Accident Assessment–permitting aloft assembly levels, he said.
Exploration Program Underway
Rio2 is conducting an infill diamond drilling program over 46,480 metres to replace reserves mined and grow resources. Out of which 17,200 m have already been completed.
The company is also looking for near surface open pit mining and mapping the work across its 46,000 hectare land to find more targets. Rio2 acquired Condestable in January and says the new upgrade underscores the discovery potential of the asset.
Source: SMH
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