Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF), a Vancouver-based minerals exploration and development company, is making significant strides in advancing its Alacran project in Colombia.
Alacran, situated approximately 200 kilometers north of Medellin, forms part of the San Matias land package covering around 20,000 hectares in an area known for its porphyry copper-gold and carbonate replacement mineralization.
Cordoba, in collaboration with JCHX Mining Management Co Ltd, is developing the project.
The San Matias region, nestled in the northern foothills of the Western Cordillera, benefits from excellent infrastructure and a favorable climate for year-round mineral exploration. Notably, the Alacran property represents just 1% of the San Matias tenements explored to date.
Project history dates back to initial exploration in the late 1980s, with Cordoba acquiring the San Matias project in 2015 and subsequently completing the purchase of the Alacran deposit in June 2020.
After putting out a prefeasibility study in 2022, Cordoba completed a feasibility study that pinpointed Alacran’s economic attractiveness with an after-tax net present value of $360 million and an internal rate of return of 23.8% over a three-year payback period.
The project entails the development of a conventional truck-shovel open pit mine, with an estimated life of 14.2 years and an annual average production of 39.5 million tonnes of mined material. Notably, the projected life of mine cash costs for copper are $1.35 per pound, showcasing strong financial viability. Its composition includes 75% copper, 22% gold, and 3% silver, with an initial capital expenditure of approximately $420.4 million.
The study paves the way for the transition from exploration to development, with detailed mine engineering and design underway.
CEO Sarah Armstrong-Montoya is confident about the project's trajectory, with support from shareholders, stakeholders, and the Colombian government.
“We’re well on our way to the next phase (of development),” Armstrong-Montoya said in an interview with Proactive. “We've already started the selection process on the detailed engineering work and we anticipate that the mine construction will start by H2 of this year.”
As Cordoba progresses towards mine construction, it anticipates significant milestones in 2024, including detailed engineering work and continued community engagement efforts. A second $40 million tranche from Cordoba's Chinese partners, JCHX, will support detailed engineering efforts. Additionally, Cordoba remains committed to community engagement and development, having trained and upskilled over 500 individuals in local communities to date. Infrastructure improvement initiatives, including roads, medical facilities, and sports facilities, will continue throughout 2024.
According to Armstrong-Montoya, it was a “huge feat” for the company to file its environmental impact assessment and feasibility study. Add to that closing the deal with JCHX and bringing their expertise into the fold, Cordoba is able to draw on a deep well of experience to advance Alacran with key stakeholders involved in the project.
“The Colombian government in particular has really recognized the importance of copper and that it's fundamentally imperative for the new electrification and transitional energy era,” Armstrong-Montoya said. “It’s an extremely exciting time right now and we're glad to be part of that.”