Hillside economics updated
PERTH (miningweekly.com) – An updated feasibility study into the Hillside copper/gold project, in South Australia, has estimated that the project would require a capital investment of some A$585-million, and would produce some 35 000 t/y of copper and 24 000 oz/y gold based on a six-million-tonne-a-year operation.
The project is expected to have an initial mine life of 12 years.
Junior Rex Minerals said that the capital cost estimate for the project was a A$105-million increase on the 2015 study, however, operating costs have been reduced by at least A$190-million with a reduction in diesel prices, diesel burn rates and a reduction of maintenance costs.
C1 cash costs for the project have been estimated at $1.38/lb of copper and all-in sustaining costs at $1.60/lb.
Rex on Tuesday reported that based on a gold price of $1 550/oz and a copper price of $3/lb, the project was projected to have a net present value of A$501-million and an internal rate of return of 16.2%.
Annual earnings before interest, taxes, depreciation and amortization have been estimated at A$152.7-million.
“Hillside remains one of Australia’s largest undeveloped openpit copper mineral resources and contains 2-million tonnes of copper and 1.4-million ounces of gold,” said Rex MD Richard Laufmann.
The project is expected to employ between 500 and 550 staff during construction and around 430 during operation.
Laufmann said that with the South Australian government’s recent approval of the programme for environment protection and rehabilitation for the Hillside project, Rex now had a pathway to development.
The company was planning to pursue all available financing options, Laufmann added.
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