Ann: PFS reveals Australia's largest undevelo, page-6

re: Ann: PFS reveals Australia's largest ... Got a nice plug in Adelaidenow.

Rex bullish on $900 million copper mine at Ardrossan

Cameron England

October 31, 201211:19AM

REX Minerals' Hillside copper mine at Ardrossan would cost $900 million to build and produce $3.6 billion in cashflow over 15 years, the company says.

Rex today released the prefeasibility study for the mine, estimating it will generate $11 billion in revenue over the current mine life.

The major cost of the project would be a $680 million processing plant and surface infrastructure, while the project benefits from being just 12km from the Ardrossan port.

Another $120 million could be spent to treat tailings left over from copper and gold production to create an iron ore product.

Rex is estimating the mine will produce 70,000 tonnes of copper per year and 50,000 ounces of gold.

Iron ore production would be about 1.2 million tonnes per year.

Rex managing director Mark Parry said the prefeasibility study showed it was an exciting project.

"This new Hillside study reaffirms the economics of a robust and significant copper project, possibly the best open pit project in Australia since Ernest Henry 25 years ago," Mr Parry said.

"Hillside is blessed with location advantages of port, power, water and near surface ore, which are the drivers of low capital and operating costs.

"In an environment where project capital spends are increasing worldwide, Hillside's capital intensity is 30 per cent less than a recent world average estimate of US$15,000 per tonne of annual copper production.

"In Australia and globally, as copper mines are going deeper and underground, new open pit mines are far and few between.

"Next month we expect to release the first reserve statement for Hillside which will be another important step towards proving up Hillside as one of Australia's largest copper projects."

Rex intends to transport its concentrates to the port via a slurry pipeline.

It has already locked in water supplies with SA Water, and there is ample power infrastructure.

"Rex will submit the required SA Government approval documentation in early 2013," the company said.

"The bankable feasibility study, SA Government approvals and final financing are all anticipated to be completed before the end of 2013 in time for construction start-up in early 2104."

Rex shares were 4.5c higher at 83.5c in early trade.

http://www.adelaidenow.com.au/business/rex-bullish-on-900-million-copper-mine-at-ardrossan/story-e6frede3-1226507409739