Vancouver’s Los Andes Copper (TSXV: LA; OTC: LSANF) signed a US$20-million royalty agreement with Ecora Resources. The royalty includes a 0.25% net smelter royalty (NSR) on sales from open pit operations and a 0.125% NSR on underground production.
The new agreements are in addition to existing NSRs of 2% for open pit production and 1% for underground output.
Los Andes is developing its 100% owned Vizcachitas copper-molybdenum project in Chile, 150 km north of Santiago. The prefeasibility study released in February 2023 demonstrated a 26-year open pit operation at 136,000 t/d. With a copper price of US$3.68/lb., the after-tax net present value with an 8% discount is US$2.78 billion with an internal rate of return of 24%. The pre-production capex is US$2.4 billion with a construction period of 3.25 years and a payback period of 2.5 years after production begins.
The all-in sustaining cost will be US$2.23/lb. copper for the first eight years and US$2.35/lb. copper over the life of the project.
The project has proven and probable reserves of 1.22 billion tonnes grading 0.36% copper, 136 ppm molybdenum, and 1.1 g/t silver or 0.41% copper equivalent (CuEq). Measured and indicated resources, inclusive of reserves, total 1.54 billion tonnes grading 0.383$ copper, 155 ppm molybdenum, and 1.1 g/t silver or 0.436% CuEq. There are also inferred resources of 1.82 billion tonnes grading 0.342% copper, 123 ppm moly, and 0.9 g/t silver or 0.384% CuEq.
Additional details of the Vizcachitas copper-molybdenum development at available on www.LosAndesCopper.com.
