Antares Minerals (ANM-V) has completed a preliminary economic assessment for its Haquira project in southern Peru that looks at building a copper-moly-gold mine with a 20-year mine life.
The mine’s average annual production would amount to 4.25 million lbs. of copper, 5 million lbs. of molybdenum and 27,000 oz. gold.
The study estimates the project has a net present value of US$1.07 billion and would have an after-tax internal rate of return of 16.4% using a long term copper price of US$2.25 per lb. and a discount rate of 8%.
The operation would process 130,000 tonnes of ore per day, with about 100,000 tonnes going through the mill and flotation plant while the remaining 30,000 tonnes would be heap leached.
The mine would start as an open pit, going as deep as 700 metres over the first five years, after which time the company would switch to underground mining.
Total capital costs would amount to US$2.82 billion, including sustaining capital and a contingency for 20%.
Antares is now starting a prefeasibility study to continue evaluating the potential of the project. The company has six drill rigs onsite to do infill drilling, geotechnical drilling, hydrological studies and to test exploration targets near the immediate a vicinity of the deposit.
The PEA did not consider any synergies with Xstrata subsidiary, Xstrata Copper’s Las Bambas copper-gold project, which is contiguous to, and immediately north of Antares’ Haquira project.
Antares holds a 100% interest in Haquira after fulfilling an option agreement requiring it to spend $15 million over five years. The company also has an option agreement with a subsidiary of Hochschild Mining whereby Anatares can acquire up to a 60% interest in the Cristo de los Andes project located just south of Haquira.
Antares shares were up 4¢ today to $2.65 a piece on a trading volume of 147,000 shares.
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