Feasibility positive for Minera’s Ivan

Results of a feasibility study on the Ivan copper project in northern Chile justify a positive production decision, says owner Minera Rayrock (TSE).

If the initial cash cost is US$20 million and operating costs are 63 cents per lb. copper, the mine should produce a yearly cash flow of about US$9.4 million at current copper prices, the study concludes.

The study also confirmed proven and probable reserves of 4.3 million tonnes grading 2.5% copper, which would sustain a mine life of 8.6 years. Additional probable and possible reserves, not included in the initial mining plan, would add another 18 months to the life of the mine.

To keep costs down during the fragile teething years, Minera plans to begin with a heap leach operation to process shallow oxide reserves at a rate of 420,000 tonnes per year. Underground development and construction of a mill to treat sulphide ore would follow in years three and four.

Production from the Ivan project is estimated to be 22.6 million lb. copper per year, peaking at 31.8 million lb. in year five.