Aldebaran Resources has released the preliminary economic assessment (PEA) for its Altar copper-gold project in San Juan, Argentina, outlining a mine life of 48 years.
Prepared in accordance with National Instrument 43-101 standards, the Altar copper-gold project PEA presents the base-case scenario featuring a concentrator with a capacity of 60,000 tonnes (t) per day.
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The facility will process mineralised material sourced from both open-pit and underground operations.
The PEA results are presented on a 100% basis, although Aldebaran Resources holds an 80% interest in the project, with the remaining 20% owned by Sibanye-Stillwater.
The assessment highlights a long-life operation, including three years of construction, with significant production potential.
During the first 20 years of operation, average annual production is projected at 121,445t of copper equivalent (CuEq), consisting of 108,579t of copper, 43,199oz of gold and 570,217oz of silver.
Over the initial 30 years, the average annual production is expected to be 116,294t CuEq, including 105,897t of copper, 33,866oz of gold and 557,239oz of silver.
For the entire life of mine (LoM), the average annual output is anticipated to be 101,413t CuEq, with 92,891t of copper, 27,020oz of gold and 525,192oz of silver.
From an economic perspective, the PEA utilises base-case metal prices of $4.35 per pound (lb) of copper, $2,500/oz of gold and $27/oz of silver.
Based on these assumptions, the project is expected to generate an after-tax net present value (NPV) (8%) of $2bn (C$2.8bn), an internal rate of return (IRR) of 20.5% and a payback within four years.
The total LoM gross revenue is estimated at $44.7bn, with cumulative free cash flow of $10.7bn.
At spot prices of $5/lb of copper, $3,963/oz of gold and $47/oz of silver, the after-tax NPV increases to $3.34bn and the IRR to 28%.
The upfront capital requirement is reduced by adopting a staged approach to both the tailings storage facility and underground construction.
Capital intensity stands at $15,713/t of average annual CuEq metal produced, while the NPV at 8% to initial capex ratio is 1.27-times.
The mining operation will utilise a combination of open-pit and underground mining methods.
The underground mining strategy is designed to access higher-grade mineralisation earlier in the mine life, thereby increasing production and generating cash flow.
Approximately 80% of the resources included in the mine plan, by tonnage, are classified as measured and indicated, with the remaining 20% categorised as inferred.
