XXIX Metal has released the results of its preliminary economic analysis (PEA) for the Opemiska copper project in Quebec, highlighting compelling economic and production metrics. The PEA projects a 17-year mine life with a total payable copper of 715 million pounds, along with 409,000 ounces of gold and 2.08 million ounces of silver. It demonstrates robust after-tax economics, with an after-tax NPV8% of C$505 million under base case assumptions—and rising to C$897 million using spot prices—and an after-tax IRR of 27.2%. The analysis also reveals a rapid payback period of just 2.3 years based on an initial capital investment of C$617 million, supported by high-grade early-year deposits.
The mine is expected to deliver strong annual production during the first six years, with 59 million pounds of copper, 34,000 ounces of gold, and 174,000 ounces of silver recovered. Opemiska will operate as a low-cost producer, with a C1 cash cost of US$1.03 per pound of copper during the first six years and US$1.40 per pound over the entire mine life, positioning it in the lower quarter of the global cost curve. The project shows significant leverage to rising copper and gold prices, with projected lifecycle revenues of approximately US$4.4 billion, comprising 70.7% copper, 27.9% gold, and 1.4% silver.
The economic outlook derives from a processing rate of 12,500 tonnes per day, delivering an average annual output of 62 million pounds of copper, 38,000 ounces of gold, and 193,000 ounces of silver in the early years, gradually decreasing over the mine life. The project’s open pit mining will be completed in four distinct phases, with minimal impact on nearby communities, and a conventional flotation process will extract a final copper concentrate grade of 20%.
In terms of capital, initial expenditure totals approximately C$617 million, with funding planned over two years. XXIX Metal also anticipates receiving around C$149.6 million in government incentives through the new Clean Technology Manufacturing Investment Tax Credit (CTM-ITC), which could lower net initial costs. Operating costs are estimated at C$34.52 per tonne processed, supported by average recovery rates of 92% for copper, 80% for gold, and 80% for silver.
Sensitivity analyses indicate that a 15% decrease in copper prices reduces the NPV8% to C$505 million but keeps the IRR at 27.2%, while a 45% drop in gold prices lowers NPV8% to C$505 million and IRR to 27.2%. Higher commodity prices significantly improve project economics, underscoring its positive leverage.
The PEA is based on approximately 55% of the indicated and inferred mineral resource estimate, which, being partly inferred, is considered too speculative for reserve status at this stage. The project’s phased open pit plan spans four stages over 17 years, with a processing capacity of 12,500 tonnes per day. The metallurgical flow sheet involves crushing, grinding, rougher flotation, regrinding, and cleaner flotation to produce a copper concentrate, with average recoveries of 92% for copper, 80% for gold, and 80% for silver.
More information is posted on www.Xxix.ca.
