metminco scoping study article

Mostly from today's Ann but also includes a broker comment:

http://www.proactiveinvestors.co.uk/companies/news/54338/metminco-scoping-study-underlines-the-world-class-potential-of-los-calatos-54338.html


An independent scoping study assessing the potential of Metminco’s (LON:MNC, ASX:MNC) Los Calatos copper  project in Peru has confirmed its potential as a low cost, long-life mine.
Compiled by NCL Ingeniería y Construcción, it looked at the development of the operation as an open-pit followed by a block cave mine with an expected lifespan of 31 years.
Over that period it is expected Los Calatos will yield 656mln tonnes of copper at 0.45% copper and 0.026% molybdenum, or 0.56% copper equivalent. Annually it would be expected to produce 83,300 tonnes of copper concentrate.
Cash costs of the operation are expected to be in the lowest quartile of producers at US$1.09 per pound, while pre-production capital expenditure is put at around US$1.5bn.
Managing director William Howe said: "The robust outcome of the mining scoping study is an exciting development for Metminco as we pursue our vision of becoming a leading mid-tier copper producer.
“Los Calatos is now well placed for development as a long-life, low cost, operation in an investment friendly jurisdiction in South America.
“Further, it is highly deliverable with the designated status of a project of national interest by the Peruvian government, no competing land usage, seawater accessed for metallurgical processing purposes and relatively low power costs compared to similar operations in Chile.
“The project has the potential to be a world-class copper mine, which, against a global backdrop of diminishing long life copper projects in mining friendly jurisdictions, should command significant strategic interest.
“The completion of the study significantly de-risks Los Calatos and allows Metminco to consider its full range of strategic options in relation to the financing and development of the mine.
“With cash on hand of US$17 million early January 2013, and multiple advanced stage development assets, the company has considerable flexibility to focus on the projects and development strategies most likely to deliver real shareholder value in the long term."
At 10am, the stock was changing hands for 3.26 pence – making a rise of 0.16 pence, or 5%. City Broker Investec said: “[This is] a positive outcome for Metminco, albeit an early stage scoping study, with the study highlighting remarkably low cash costs, well into the bottom quartile.”