A$20 billion dollars in ground metal value?, page-8

Current total inground resource value of around AUD$20b will have revelance depending on ones outlook for copper demand. Large projects take up to 15years from initial exploration to steady production , many new projects are needed.

Head grade of RXM initial project is 0.66% copper and 0.17g/t gold. With future copper demand copper price during this initial project could average US$3.20lb and AUD/US exchange could average 0.70c then copper revenue less feasibility c1 costs of US$1.61lb will bring in AUD$2.1b (AUD$175 per year) over initial 12 years , project costs of AUD $480m and interest charges will amount to something like AUD$600m assuming most of the AUD$175m a year in cashflow from the above calcs is used to repay project cost debt and interest over first 3.3 years.


Rex Minerals Ltd (Rex) has completed the Extended Feasibility Study (EFS) for its 100% owned Hillside Project on the Yorke Peninsula, South Australia. The results have significantly improved the Project’s competitive fundamentals and materially reduced the upfront capital investment.

Key outcomes from the EFS include:

• A stand-alone copper-gold project with an initial 13+ year mine life at a processing rate of 6 million tonnes per annum (Mtpa).

• Annual average production over first 12 years of 129,000 tonnes of copper concentrate containing payable metal of:
o 35,000t copper; and
o 24,000ozs gold.

• A processing head grade of 0.66% copper and 0.17g/t gold over the first 12 years of production.

• Pre-production capital investment of A$480 (US$360) million and average operating costs (C1) of
US$1.61/lb. (Including gold credits)