Oroco Reveals Strong Financial Metrics for Santo Tomas Project
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Oroco Announces 22.2% After-tax IRR and $1.48 Billion NPV for Santo Tomas Project
Oroco Resource Corporation (“Oroco” or the “Company”) (TSXV: OCO; OTCQB: ORRCF, BF: OR6) has announced a revised Preliminary Economic Assessment (“PEA”) and updated Mineral Resource Estimate (“MRE”) for the North Zone and South Zone of its Santo Tomas Porphyry Copper Project. The PEA indicates a staged open pit mine and processing plant achieving 60,000 tonnes per day (t/d) production in year 1 and expanding to 120,000 t/d in year 8 over a 22.6-year Life of Mine (“LOM”). Production will be preceded by two years of construction and one concurrent year of pre-stripping. The PEA has been prepared by Ausenco Engineering USA South Inc., and the updated MRE and geological model were prepared by SRK Consulting (U.S.), Inc. and SRK Consulting (Canada) Inc.
Highlights of the Revised PEA
Notable highlights from the revised PEA include:
- NPV (8%) of US$2.64 billion pre-tax and US$1.48 billion post-tax.
- IRR of 30.3% pre-tax and 22.2% post-tax.
- Total LOM payable copper production of 4,774 million pounds.
- Pre-tax payback of 2.9 years; post-tax payback of 3.8 years from first concentrate production.
- Initial capital costs estimated at US$1,103.5 million; sustaining and expansion capital costs estimated at US$1,734.1 million.
- Annual LOM C1 Cash Cost of US$1.54/lb Cu on a by-product basis.
- Average CuEq grade of 0.51% over the first 7 years of production.
- Capital efficiency ratio (NPV / Initial Capital Cost) of 1.34.
- Total mineralized material mined of 825.5 million tonnes.
CEO Commentary on the Updated PEA
CEO Richard Lock commented, “When we completed the initial PEA, it was clear there was additional value to be unlocked at Santo Tomas. Upon careful analysis, a staged approach to the mine expansion and a focus on exploiting the higher-grade near surface materials in the early years of mining has unlocked a considerable increase in value. We have established a plan that maintains a higher-grade feed profile to delay the requirement for an expansion until year 8. Copper Equivalent production in the first 7 years is forecasted at 1.34 billion pounds at an average Mill Feed grade of 0.51% Cu Eq.”
Significant Economic Potentials
This work establishes Santo Tomas as one of the most capital efficient large-scale, low-cost copper projects in the world.
Project Overview
The Santo Tomas property consists of 9,034 hectares of mineral concessions that encompass significant porphyry copper mineralization. The PEA utilized data from 68 diamond drill holes totaling 43,063 meters and included extensive historical and recent drilling data. The historical exploration provided robust data for projecting potential value.
Commodity Price Assumptions
Commodity price assumptions for the Discounted Cash Flow (DCF) analysis include: Cu at US$4.00/lb, Mo at US$15.00/lb, Au at US$1,900/t.oz, and Ag at US$24.00/t.oz. The DCF analysis prepared by Ausenco predicts significant returns based on these assumptions.
Future Opportunities
Future opportunities include infill resource drilling, additional studies on comminution, and evaluating various process designs to further enhance project outcomes. The company maintains ongoing engagement with local communities and focuses on reducing environmental impacts associated with the project.
Company Information
Oroco holds a net 85.5% interest in the core concessions of the Santo Tomas Project, supported by a comprehensive drilling and resource evaluation program that positions it favorably within the global copper market.
Contact Information
For further information, please contact:
Richard Lock, CEO
Oroco Resource Corporation
Tel: 604-688-6200
Email: info@orocoresourcecorp.com
Frequently Asked Questions
What is the IRR and NPV for Oroco's Santo Tomas Project?
The IRR is 22.2% post-tax and the NPV is $1.48 billion post-tax.
Who prepared the PEA for the Santo Tomas Project?
The PEA was prepared by Ausenco Engineering USA South Inc.
What is the expected production capacity of the mine?
The mine is designed to achieve a production capacity of 60,000 tonnes per day, increasing to 120,000 tonnes per day over time.
What are the planned capital costs for the project?
Initial capital costs are estimated at US$1,103.5 million, with sustaining and expansion capital costs estimated at US$1,734.1 million.
How does Oroco engage with local communities regarding the project?
Oroco maintains transparent communications with local communities to address concerns and share information about the project status and plans.
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