Marimaca Copper's DFS Reveals Strong Copper Production Prospects
Marimaca Copper Unveils Definitive Feasibility Study Results
Founded in the copper-rich regions, Marimaca Copper Corp. stands at the forefront of mineral resource development, focusing on its Marimaca Oxide Deposit (MOD). The latest Definitive Feasibility Study (DFS) highlights the project’s economic potential, showcasing robust fundamentals with a targeted copper cathode production of 50 ktpa over an estimated 13-year reserve life.
Key Highlights from the DFS Report
The DFS results present a clear picture of the project’s commercial viability. Significant findings include:
Finances and Capital Costs
The pre-production capital cost is estimated at US$587 million, with a capital intensity of US$11,700 per tonne of copper production capacity. This positions MOD among the most economically favorable copper development projects globally.
Mining Operations
Utilizing a simple open-pit mining method, the project anticipates a life-of-mine strip ratio of 0.8:1, indicating efficient resource extraction. The production peak between years 2 and 10 is projected at approximately 49 ktpa, ensuring steady output.
Copper Production Cost Analysis
Cost management underpins the project's financial foundation. The initial five years of production has been estimated with C1 cash costs of approximately US$1.45 per pound, rising to US$1.68 per pound during steady-state production. Additionally, the All-In Sustaining Cost (AISC) for the initial five years is projected at US$1.97 per pound, reflecting efficient operational control.
Exceptional Economic Metrics
The DFS suggests strong cash flow generation under various copper price scenarios. For instance, at a long-term copper price of US$4.30 per pound, the project's post-tax Net Present Value (NPV) calculates to US$709 million with an Internal Rate of Return (IRR) of 31%. Should market prices reflect the recent 3-month average of US$5.05, the project exhibits an even brighter outlook with a post-tax NPV of US$1.07 billion and an IRR soaring to 39%.
Reserve Potential
The mineral reserve estimates speak volumes about the project's potential. The maiden Proven and Probable Mineral Reserves are projected at 178.6 million tonnes, with an average grade of 0.42% CuT, equating to 750,000 tonnes of contained copper. This underpins a solid foundation for future production opportunities.
Growth and Development Strategy
Marimaca's vision centers around organic growth, showcasing multiple avenues for expansion beyond the immediate DFS results. This encompasses exploring the inferred resources treated as waste that can enhance the mine's life. The commitment to resource optimization is also evident, as growth prospects expand through Pampa Medina and Madrugador deposits.
Long-Term Outlook
Marimaca Copper is determined to secure the commercial viability of the MOD through prudent capital expenditure and careful financial planning. The capital cost estimates have been prepared following rigorous industry standards, establishing the company’s commitment to excellence.
Investor sentiment surrounds Marimaca as it engages in discussions for preferred debt financing partners, projecting a sustainable path forward. With strategic support from substantial equity holders like Assore and Mitsubishi, Marimaca is enhancing its financial footing.
Conclusion and Investor Engagement
Marimaca Copper Corp will be hosting an investor presentation to discuss the DFS findings in detail. Investors are encouraged to join and submit questions during this informative session. With over US$24 million available as of mid-2025, the company is poised to initiate key development activities leading to production.
Frequently Asked Questions
What is the expected copper production capacity from the MOD?
The Marimaca Oxide Deposit aims for a nominal copper production capacity of 50 ktpa.
What are the projected capital costs for the project?
The DFS estimates the pre-production capital costs at approximately US$587 million.
How does the project’s C1 cash costs compare to industry standards?
The estimated C1 cash costs are projected to be US$1.45 per pound in the initial five years, which positions the project competitively in the lower-cost quartile among copper producers.
What is the expected lifespan of the Marimaca project?
The initial life of the mine is estimated at 13 years.
Will there be any investor presentations regarding the DFS results?
Yes, Marimaca will host an investor presentation detailing the DFS findings shortly after the announcement.
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