Crazy Horse Resources (CVE:CZH) said it has received the results to a preliminary scoping study for its Taysan copper-gold porphyry project in the Phillippines, indicating a net present value of US$734 million at a 10% discount rate.
Based on a copper price of US$3.00 per pound, the results also estimated a 22.7% internal rate of return from the project, which is expected to produce 3.1 billion pounds of copper and 1.5 million ounces of gold over a 24 year mine life.
The report, conducted by AMEC Minproc Limited of Australia, projected a low cash cost from years one to four, at US$0.77/lb copper net of by-product credits, and at US$1.14/lb copper for the entire life of the mine.
The Taysan project is also anticipated to have a capital cost of US$1.04 billion, higher than originally estimated due to the addition of a magnetite plant, additional mining fleet, and a general increase in cost of materials, the Phillippines-based company said.
Crazy Horse also said it expects an updated NI 43-101 compliant resource estimate for the property to be completed within 30 days. In addition, the company has approved the next stage of the feasibility study, which is estimated to take up to 18 months to complete.