Los Andes Copper Ltd (TSX-V:LA) said a pre-feasibility study (PFS) for its Vizcachitas copper project located 150 kilometres north of Santiago in Chile demonstrates the robust economics of the world-class resource.
The PFS, prepared by Tetra Tech (NASDAQ:TTEK) Sudamérica S.A, showed the project has a $2.8 billion post-tax net present value using an 8% discount rate and an internal run rate of 24% at $3.68 per pound copper, $12.9 per pound molybdenum, and $21.79 per ounce silver.
It showed Proven and Probable Reserves of 1.22 billion tonnes at 0.36% copper, 136 parts per million molybdenum, and 1.1 grams per ton silver, which equates to a copper equivalent grade of 0.41%.
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Measured and Indicated Resources increased by 16% to 14.8 billion pounds of copper equivalent, and the Inferred Resource increased by 130% to 15.4 billion pounds of copper equivalent, Los Andes noted.
It demonstrated an average annual production of approximately 183,017 tonnes of copper at a C1 cost of $0.93 per pound of copper (net of by-products) for the first eight years.
The initial project Life of Mine (LOM) is 26 years, producing nearly 8.8 billion pounds of copper, 273.3 million pounds of molybdenum, and 32.7 million ounces of silver, according to the PFS.
The PFS also highlighted potential opportunities to improve the project, including further drilling to reclassify Inferred Resources to Measured and Indicated Resources and incorporate them into the mine plan; and further drilling to define the extent of the mineralization both laterally and at depth.
A Tier 1 asset
Los Andes Copper CEO Santiago Montt said the PFS showed that Vizcachitas is "clearly a Tier 1 asset" that has the potential to join the ranks as one of the largest and most profitable copper mines in Chile.
“The project is economically robust with the potential for considerable upside through further drilling to upgrade the Inferred Resource to Measured and Indicated, thereby bringing them into the mine plan,” Montt said.
Los Andes Copper chairman Eduardo Covarrubias added: “The study focused on ensuring Vizcachitas would lead the way in sustainable mining, and we are delighted to announce that our three key targets: to reduce water usage, power consumption and the footprint of the project have all been met, allowing us to deliver a mine that minimizes its impact on the environment."
A conference call discussing the PFS results will be held on Friday, February 24, 2023, at 12pm ET. Further information about the PFS and information on how to register for the conference call can be found here.
Los Andes Copper is an exploration and development company with a 100% interest in the Vizcachitas project in Chile. The company is focused on progressing the project, which is located along Chile's most prolific copper belt, into production.
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