Corriente looks at smaller model (March 06, 2003)

Vancouver An independent study gives the Mirador open pittable copper-gold deposit in southeast Ecuador has a pre-tax net present value of US$153 million, using a 20,000 tonne per day base case and a copper price of US$0.80 per lb.

Operator Corriente Resources (CTQ-T) puts the total capital costs on the project at US$134 million, which includes a conventional flotation plant with a 32 ft sag mill. Based on the latest model, the mill would require 94 million tonnes of ore over a 13-year mine life. This allows the junior to use just the northern portion of the deposit, which has a low strip ratio and leaves the southern portion out of the assessment but available for additional resources.

Under the plan some 98 million tonnes grading 0.78% copper and 0.22 gram gold per tonne of inferred reosurce is used over a total resource of 182 million tonnes at 0.76% copper and 0.22 gram gold. At a copper price of US$0.70 per lb, the model generates a pre-tax internal rate of return of 22% and a net present value at 10% discount of US$84 million.

The new study follows an earlier model using a 50,000 tonnes per day operation and based on the latest findings, the report recommends a US$1.2 million prefeasibility study over the project.