PERTH (miningweekly.com) – ASX-listed junior Blackthorn Resources was hoping to lower the capital cost expectations of its Kitumba copper project, in Zambia.
Blackthorn told shareholders on Thursday that optimisation work on the previous prefeasibility study (PFS) had so far indicated improved fee grade and recovery, lower operating costs and substantially improved economics.
The initial PFS, which was completed in September last year, indicated that a capital investment of some $358-million would be required to develop an underground operation with a life-of-mine of 11 years.
Ore production was expected to be about three-million tonnes a year of run-of-mine coal to a combination flotation and solvent extraction and electrowinning plant to produce about 39 000 t/y of copper.
The project was initially thought to have a net present value of $108-million and an internal rate of return of 12.7%.
“Considerable progress has been made on the Kitumba copper project PFS optimisation, and we are greatly encouraged by the outcomes to date,” said Blackthorn CEO Mark Mitchell.
“While the preliminary PFS results released in September indicated that the Kitumba project was economically and technically feasible, the optimisation work is providing further indication of enhanced economics in line with our expectations outlined when the optimisation programme started.”
The results of the optimisation study were expected by the end of April this year.