It’s been a long time coming, but a new feasibility study of the sulphide mineralization at Aur Resources‘ (AUR-T) Andacollo copper-gold mine in Chile is showing very positive economics, and production decision could be made within a few months.
Situated 55 km from the port city of La Serena in north-central Chile, the current Andacollo open-pit mine exploits oxide material, produces about 46 million lbs. (20,884 tonnes) of high-quality cathode copper annually.
The mine is owned by: Aur, its operator and discoverer (63%); Minera del Pacifico (27%); and the Chilean state agency Empresa Nacional de Mineria (ENAMI) (10%).
The sulphide reserves total 422 million tonnes grading 0.38% copper and 0.13 gram gold per tonne. From that,. Aur would mine an average of 68,700 tonnes of copper and 57,900 oz. gold per year for 21 years.
The after-tax internal rate of return is estimated to exceed 15% on US$336 million of pre-production capital, with a capital payback of 5.1 years.The study used a copper price of just US$1.20 per lb. and a gold price of US$400 per oz.
Production could begin in late 2009, says Aur, which hints at making a positive production decision in late July 2006.
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