Based on the positive results of a feasibility study,
Fortunately for Nord and Australian partner Straits Resources, Tritton is situated a mere 26 km from their producing Girilambone copper mine and could benefit from its infrastructure.
Reported to be the lowest-cost copper producer Down Under, Girilambone is an open-pit mine that employs heap-leach and solvent extraction-electrowinning (SX-EW) processing. Cash operating costs in the latest quarter were US33 cents per lb., and US35 cents per lb. for the year-to-date.
Tritton, on the other hand, would be an underground mine using ramp access to develop the upper levels, followed by a shaft in the fourth year of production.
Discovered by Nord in 1996, the project contains a minable, diluted resource of 9.2 million tonnes at a grade of 2.63% copper, which is still open at depth. This figure includes proven reserves, in the upper portion of the deposit, of 2.5 million tonnes at 3.51% copper, and probable reserves of 2.1 million tonnes at 2.69% copper.
The first mining scenario — the base case — calls for mining by ramp access of only 4.6 million tonnes of proven and probable reserves over a 7-year period. The second scenario, or extended case, assumes conversion of the deeper resources into reserves by drilling from underground, rather than costly surface drilling prior to mine development.
The study also examined two processing alternatives, both of which are reported to have demonstrated “economic viability.” The first alternative is to produce a conventional flotation concentrate for shipment and sale to a smelter, possibly one being refurbished at nearby Port Kembla.
The second option is to produce cathode copper on site by regrinding the flotation concentrate, and then using low-temperature pressure oxidation, acid-leaching and SX-EW at the existing Girilambone facilities.
Nord’s chief executive, Pierce Carson, says the second alternative has demonstrated “superior economics” but will require additional pilot-plant testwork. Even so, based on results to date, he says the company is “confident the process can be utilized on a commercial scale with a low level of risk.”
The extended case (based on a 10-year mine life) would require capital of US$27.5 million for a conventional operation, compared with US$44 million for an SX-EW operation. Copper production would be roughly similar, though cash costs for a conventional operation are estimated at US56 cents per lb., compared with US44 cents per lb. for the SX-EW option. These estimates are based on copper prices of US75 cents per lb.
Nord and its partner have filed an environmental impact statement and development application for the project and expect to receive consent early next year. Once a production decision has been made and financing is secured, development and construction would take about 18 months.
Nord is currently seeking financing for its wholly owned Simberi oxide gold project in Papua New Guinea and will soon release details of a $22-million feasibility study for the 35%-owned Ramu nickel-cobalt project, also in Papua New Guinea.
On the financial front, Nord reported net income of US$1.3 million (or 11 cents per share) for the quarter ended Sept. 30. The company says its copper hedging program has allowed it to realize sales prices (after hedging costs) of about US86 cents per lb. this year.
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