Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF) announced that it has completed a Feasibility Study for its flagship Alacran copper-gold project in Colombia which has demonstrated that it is economically attractive.
Per the study, the project has an after-tax net present value of $359 million and an internal rate of return of 23.8% with a payback period of three years.
The life of mine is projected to be 14.2 years in addition to an estimated two years of construction and pre-production mining when freshly mined ore will be stockpiled along with historical tailings.
The average mining rate is projected to be 39.5 million tons per year of which ore material will be fed to dual processing plants made up of a main processing facility for fresh and transition material and a separate wash gravity plant for saprolite ore and historical tailings.
Initial capital cost is estimated at $420.4 million for the construction of a conventional truck-shovel open pit mine.
Life of mine cash costs for copper net of by-product are expected to be $1.35 per pound, with the total life of mine costs expected to be $2.66 per pound.
The FS has been used as the basis for an Environmental Impact Assessment (EIA) which was filed with the relevant Colombia government authority on December 11, 2023, Cordoba noted.
"The filing of the EIA in conjunction with the completion of the Feasibility Study for Alacran officially commences the next chapter for Cordoba as we transition from a pure exploration company to a development enterprise, which is a landmark milestone achieved through the unequivocal dedication by the Cordoba team and unwavering support from our shareholders and stakeholders," Cordoba CEO Sarah Armstrong-Montoya said in a statement.
At Alacran, detailed mine engineering and design work are slated to commence in early 2024 with a targeted completion date late in the second quarter.
The company along with co-development partner JCHX Mining Management has scheduled an in-person workshop to initiate the engineering phase of the project which is scheduled for January 2024.
"Given our partner JCHX's deep experience in mine construction, development, and contract mining, we are very confident that the company will be able to swiftly compose the most optimal plan and assemble the best possible team to promptly bring the Alacran Project online," CEO Armstrong-Montoya said.
Cordoba Minerals is a mineral exploration company focused on the exploration, development and acquisition of copper and gold projects.