NEW CENTURY RESOURCES New Century Resources Limited announces the release of the Mt Lyell Copper Mine PFS results, which demonstrate highly attractive economics through the potential development of a low-cost, long-life copper and gold operation in a Tier-1 jurisdiction, supplied by 100% renewable power. The robust economic profile demonstrated by the PFS includes a pre-tax NPV7 of AUD 560 million, IRR of 22% and Life of Mine net cash flow of AUD 1,081 million. The estimated pre-production capital investment requirement is AUD 279 million, leveraging existing infrastructure, with a maximum cash draw of AUD 360 million.
Average C1 costs of USD 1.73/lb Cu (including by-product credits) are projected over the first 10 years of steady-state operations, and average life of mine C1 costs of USD 1.89/lb Cu with the inclusion of the production ramp-up period. The PFS supports an initial 25-year mine life, producing 555kt of copper and 320koz of gold in concentrate over this period. The average annual production over the first 10 years post-ramp up is approximately 27kt of copper and 16koz of gold, underpinned by an Ore Reserve containing 246kt of copper and 198koz of gold.
The first 10 years of mine life comprises 82% of production from Indicated Mineral Resource, with an additional ~8% Inferred Mineral Resource drilled and pending conversion to Indicated Mineral Resource. Highlights: Mt Lyell Copper Mine Prefeasibility Study (PFS) demonstrates highly attractive economics for the restart of underground mining operations over an initial 25-year mine life; Low-cost, long-life copper and gold operation with a pre-tax NPV7 of AUD 560 million, IRR of 22% and Life of Mine net cash flow of AUD 1,081 million; Estimated pre-production capital cost of AUD 279 million with average C1 costs for the first 10 years of steady-state operations of USD 1.73/lb Cu (including by-product credits); Total estimated production of 555kt of copper and 320koz of gold in concentrate; and PFS Board-approved with immediate progression to Feasibility Study, targeted to be finalised in Q3CY2023.
