Los Andes Copper Ltd (TSX-V:LA) said it has filed a prefeasibility study at its Vizcachitas project located in the Valparaíso Region of Chile.
The study showed proven and probable reserves of 1.22 billion tonnes at 0.36% copper, 136 parts per million (ppm) molybdenum and 1.1 grams per tonne (g/t) silver, which equates to a copper equivalent (CuEq) grade of 0.40%.
That breaks down into proven reserves of 302 million tonnes (Mt) at 0.41% copper, 135 ppm molybdenum and 1.2 g/t silver; and probable reserves of 918 Mt at 0.34% copper, 136 ppm molybdenum and 1.1 g/t silver.
It also revealed a 16% increase in measured and indicated resources from the company’s preliminary economic assessment from 2019 up to 14.8 billion pounds of CuEq.
Measured resources were 2.6 billion pounds of copper, 84 million pounds of molybdenum and 11 million ounces of silver; and indicated resources were 10.416 billion pounds of copper, 442 million pounds of molybdenum, and 43 million ounces of silver.
Inferred resources increased 130% to 15.4 billion pounds of CuEq (13.747 billion pounds of copper, 495 million pounds of molybdenum and 55 million ounces of silver).
The initial life of mine is projected to be 36 years, producing 8.763 billion pounds of copper, 273.3 million pounds of molybdenum and 32.7 million ounces of silver, based on a new plant design with a mill throughput of 136,000 tonnes per day. Annual average copper production is expected to be 183,017 tonnes, the company said.
The project has a US$2.776 billion after-tax net present value (NPV) using an 8% discount rate and an internal rate of return (IRR) of 24.2% at US$ 3.68/pound copper, US$12.90/pound molybdenum and US$21.79/ounce silver, with an estimated initial capital cost of US$2.441 billion, a construction period of 3.25 years and a payback period of 2.5 years from initial production.
Copper contributes 88% to the projected net revenue from the project, followed by molybdenum with 10% and the balance being silver credits in copper concentrate, the company said.
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