Emerging copper producer Finders Resources (AIM, ASX: FND) has released the results of the Wetar Copper Project definitive feasibility study, indicating an economically robust project with a mine life of about nine years.
The DFS estimated the life of mine operating costs of the Wetar Copper Project in Indonesia were estimated to be US$1.00/lb Cu with a total funding requirement of up to US$118 million.
The Wetar Copper Project comprises two high grade deposits, Kali Kuning and Lerokis, which are located within 3km from the coast and suitable for open pit mining.
As part of a definitive feasibility study, a demonstration SX‐EW plant with 5 tonnes per day copper cathode capacity has been operational since February 2009 and is permitted to process 100,000 tonnes of ore from the Kali Kuning deposit.
The combined resource estimate for Kali Kuning and Lerokis, at a 0.5% copper cutoff, of 8.18 Mt at 2.5% copper, or 205,000 tonnes of contained copper, of which +98% is classified as JORC Measured and Indicated categories.
After reviewing the recent DFS results, Finders approved the ordering of long lead items to fastrack Stage 1 and a further review of mining schedules, waste and ore movement, and mining indirect costs relating to the Stage 2 expansion.
Finders managing director Chris Farmer said the company hoped this would reduce the funding requirement.
The Stage 1 expansion Project development will comprise three stages, including the expansion of the current 1,800 tpa copper cathode demonstration plant to 5,000 tpa, followed by the final expansion to 23,000 tpa copper cathode utilizing the Whim Creek SX‐EW plant under option to Finders.
Stage 3 involves the development of the Lerokis pit and haulage of Lerokis ore to the Kali Kuning plant to maintain copper cathode production at 23,000 tpa.
Mr Farmer said Stage 1 used expanded heap leach areas all within the footprint of the existing disturbed area from previous mining at the Kali Kuning deposit.
"It has the distinct advantage of making Finders a profitable copper producer at the earliest opportunity, and of equal importance, it significantly reduces the construction risk in Stage 2," Mr Farmer said.
The timeline for achieving Stage 1 production is expected to be five months after completion of the permitting process.
Stage 2 comprises the expansion to a 23,000 tpa copper cathode, comprising on‐going production of 5,000 tpa from the expanded demonstration plant plus an additional 18,000 tpa, utilizing a newly constructed pad area in the adjacent Kali Kuning valley and the Whim Creek SX‐EW plant.
Subject to obtaining project finance, full capacity cathode production is expected to be reached within 12 months of Stage 1 completion.
Lastly, the Stage 3 development envisages additional ore feed from the Lerokis deposit to maintain full production levels at the existing plant and is expected to commence in year three of operations.
Finders is currently preparing to make an application for a mining permit.
The funding required for the project includes US$12 million for extra production capacity in the EDP and US$10 million for an acid neutralisation plant which were not considered in preliminary studies and are included in the DFS as a means of de‐risking the project for debt finance and based on experience from the demonstration plant.
Mr Farmer said the staged expansion route chosen for the Wetar project provides a minimum development risk approach, and also greatly increases the company’s options to secure favourable financing terms for the full scale project while retaining the maximum value for shareholders.
"The EDP will be an economic mine on a stand alone basis at current and lower copper prices, and the full scale operation will have cash costs at the mid point of world copper producers," Mr Farmer said.