Corriente’s Mirador gets positive feasibility

Vancouver – A feasibility study on Corriente Resources’ (CTQ-T) Mirador copper-gold project, in southeastern Ecuador, shows positive economics.

The report completed by engineering firm AMEC Americas reviews a 25,000-tonne-per-day open pit operation at the deposit with an indicated resource of 111-million tonnes grading 0.67% copper and 0.22 gram gold per tonne (based on a 0.4% copper cut-off grade).

Forecast production is about 58,000 tonnes (128 million pounds) of copper, 32,000 oz. gold and 395,000 oz. silver annually over the initial five years of the estimated 12-year mine life.

Estimated capital costs are US$204 million with the project showing a pre-tax internal rate of return (IRR) and net present value (NPV) of 15.5% and US$78 million respectively based on a US$1.00 per pound copper price. Strongly sensitive to copper prices, at US$1.45 per pound the project has a 40% pre-tax IRR and US$419-million NPV.

Planned operations at Mirador will enjoy a relatively low average stripping ratio of 0.8-to-1 over the project life.

Corriente is looking to fast track development of Mirador with environmental license applications being finalized for submission. The company is also considering financing options and has not ruled out selling a portion of the porphyry copper-gold deposit.

To further optimize economics, Corriente plans to amend its feasibility study to examine tripling the initial ore processing rate to 75,000-tonnes-per-day. Additionally, infill drilling is underway to upgrade inferred resources, which are currently classified as waste in the mining model. Concurrent geotechnical studies are aimed at steepening the pit walls thus reducing the amount of waste rock mined.

Just over one-third of the Mirador project’s total indicated resource of 310-million tonnes grading 0.65% copper and 0.2 gram gold has been incorporated in the mining plan.

Corriente posts a market capitalization of $104 million based on its 45.4 million shares outstanding. The company traded down about 10%, at the $2.30 per share level, on the release of the feasibility study. Its 52-week trading range is $2.02-$4.53.