Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF) has told investors that a feasibility study is now underway for its San Matias copper-gold-silver project in Colombia, which will focus on updating the mine plan and resource estimate at the Alacran deposit.
The work is also set to include trade-off studies aimed at improving the project's economics and a 40,000-metre (m) resource infill diamond drilling campaign - the largest drill program by the firm to date.
"The preliminary feasibility study result announced in January 2022 confirmed that the San Matias Copper-Gold-Silver Project will generate positive economics," said the company's CEO Sarah Armstrong-Montoya. "We are excited to continue advancing the Project, designated as a Project of National Interest by the Government of Colombia, towards the feasibility stage."
READ: Cordoba Minerals says drilling at its San Matias copper, gold and silver project in Columbia supports the mineral resource's potential
The preliminary feasibility study (PFS) for the San Matias project generated an after-tax net present value (NPV) of US$415.1 million at an 8% discount rate and an internal rate of return (IRR) of 25.4%, with a 2.2 year payback period using US$3.60 per pound of copper, US$1,650 per ounce gold and US$21.00 per ounce of silver.
A 20% increase in input metal prices, to US$4.32 per pound copper, US$1,980 per ounce gold and US$25.20 per ounce silver, increases the PFS after-tax NPV to US$713.3 million at an 8% discount rate and an IRR of 34.4%, with a 2.3 year payback period. The current spot price for copper is US$4.31 per pound.
The 40,000m drill program has been designed in two phases. An initial 25,000m will home in on the central area within the Alacran deposit that hosts multiple high-grade mineralized zones with considerable widths. It will focus on the centre and upper portions of the proposed open pit, expected to be mined within the first five years of operations.
The second phase of around 15,000m will focus on increasing the drill density, providing material to support the metallurgical testing program and upgrading the resource classification within the deeper parts of the Alacran deposit.
Cordoba Minerals is an explorer focused on the exploration, development, and acquisition of copper and gold projects.
Contact the author at giles@proactiveinvestors.com