Caravel Minerals Limited announced that completed and the report is being prepared for release in the coming weeks. As reported in the PFS Update announcement on 5 May 2022, the plant design for the PFS will be based on a through-put of 27.8Mtpa constructed as two 13.9Mtpa processing trains. At commencement of the PFS the plant was based on two processing trains with each having capacity of 12Mtpa.

The throughput capacity of each train was subsequently upgraded to 13.9Mtpa by the addition of secondary crushing, for total capacity of 27.8Mtpa. The Dual Train option was selected due to the reduced financing costs allowed by building in stages with the second stage funded from project cashflows. Following the recent updates to capital costs, Ausenco have further reviewed opportunities to optimise the plant design and reduce capital expenditure.

This review was able to consider the more advanced studies on mine schedules, metallurgy and flowsheet design, site layout, supporting infrastructure, services and material cost inputs developed to PFS level. In particular, the mining studies have indicated the mine is capable of producing at significantly higher rates than currently planned and other variables such as power and water supply are now well understood. The option review has highlighted significant cost efficiencies by building both process trains up-front rather than in stages, outweighing the financing benefits sought by deferring the second stage.

The importance of this capital efficiency was further heightened by the increased capital costs announced in May. The building of both trains at the start of the project has been adopted as the base case for the PFS. On the basis that mining and processing will commence at approximately 27Mtpa, the review also considered the option of using a single process train designed around a large SAG and ball mill combination.

Based on benchmark costing of the equipment and other costs from the PFS study, the review found a Single Train Design for 27Mtpa throughput has the potential to deliver substantial capital and operating costs benefits over the Dual Train option. Ausenco are now undertaking a more detailed study to quantify these preliminary findings. The new study will also re-evaluate the benefits of high-pressure grinding rolls (HPGRs) versus semi-autogenous grinding mills (SAGs) for a single train at the increased throughput rate.

The Single Train approximately 27Mtpa trade-off study is expected to take 4-5 weeks to complete. PFS-level mine schedules have been completed for both the Dual Train and Single Train options and have confirmed ability to deliver ore to the plant over the 28-year project life. All mining studies and other areas of the PFS required for reporting of Ore Reserves are complete and the maiden Ore Reserve will be reported with the PFS.

In order to avoid further delay, the PFS will be reported based on the current scope using the Dual Train Design. The option for a Single Train Design will be described in the PFS in as much detail as available at the time subject to reporting requirements. The full design options review will be released when completed by Ausenco.

Although the late changes in the process plant design have delayed the PFS report slightly, the overall PFS timetable has achieved good progress in all other areas and the Project is on track to commence DFS studies in the second half of this year. The PFS is expected to confirm a robust and executable project and whilst up-front capital costs will be higher than originally planned, the overall capital intensity compares very favourably to similar scale projects. The Caravel Copper Project remains one of very few projects globally with >60,000tpa Cu potential production that is well advanced and has a clear pathway to development.

With the current forecasts of substantial copper deficits in the coming years, Caravel is very well placed to be ready for financing.