SEPON PROJECT 80% OXIANA, 20% RIO TINTO SEPON COPPER PROJECT : BANKABLE FEASIBILITY STUDY (BFS)
Oxiana is now finalising the Sepon Copper Project BFS. Preliminary results demonstrate a highly competitive project with world class characteristics.
HIGHLIGHTS
A summary of the highlights of the copper base case on a full project basis is provided below:
Resources 26 Mt @ 4.1% Cu (1.0% Cut Off) for 1.1 Mt copper Mining Reserve 13.5 Mt @ 5.1% Cu _________________________________________________ Process Whole of Ore Leach, Solvent Extraction, Electrowinning Metallurgical Recovery +90% Production 60,000 t/a LME Grade Copper Cathodes Initial Mine Life 11 years _________________________________________________ Capital Cost Estimate US$155 170 M Cash Operating Cost Estimate US 35-40/lb Copper _________________________________________________ Internal Rate of Return At US 85/lb Copper Price 22% Average Operating Cash Flow US$60M/a Payback Period <3 years _________________________________________________
Oxiana's Sepon Project development strategy is on track : the Gold Project, now under construction, is to be commissioned end 2002 and will provide strong early cash flows : the Copper Project is proposed to commence early 2003, for first copper production early 2005. In terms of both capital and operating costs the Sepon Copper Project will be a world class operation.
MORE TO FOLLOW
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