Atico Mining (TSX.V: ATY; OTC: ATCMF) has completed its feasibility study for the La Plata copper-gold project in Ecuador. The project has an after-tax net present value (NPV) of US$93 million at a 5% discount rate, an internal rate of return (IRR) of 25.1%, and a payback period of 3.4 years. The project is projected to generate US$212 million in pre-tax operating cash flow.
Key highlights of the feasibility study include an annual production capacity of 310,250 tonnes, with anticipated average annual production figures of 9.71 million pounds of copper, 15,929 ounces of gold, 226,299 ounces of silver, and 13.25 million pounds of copper in concentrates over an 8.1-year mine life.
The project requires an initial capital expenditure of US$91 million, including a 9.8% contingency, and boasts competitive all-in sustaining costs of US$2.70 per payable pound of copper equivalent produced over the mine’s lifespan. The total capital cost, including VAT, is estimated at US$138 million.
The project spans 2,300 ha and boasts initial probable reserves of 2.51 million tonnes. The average grade is 1.59% copper, 2.28 g/t gold, 30.41 g/t silver, and 2.18% zinc.
“The current reserves and resources at the La Plata project are a good starting point. However, historic and recent exploration work performed here tells us that these areas still provide significant exploration potential,” said Atico CEO Fernando E. Ganoza. “We intend to test this hypothesis in the very near future.
“In addition, the currently identified resources are contained in only 1.6% of the total land package, where we see tremendous opportunities for further exploration success in the regional target areas,” he added.
Atico is producing copper and gold at its El Roble mine in Colombia.
For more detailed information, visit www.AticoMining.com.
