Capstone Copper Corp. (ASX:CSC) has released an updated feasibility study for its wholly-owned Santo Domingo copper-iron-gold project in Chile’s Atacama region.
The study reveals significant improvements in the project’s economics and production potential.
The 2024 feasibility study outlines an after-tax net present value of $1.7 billion at an 8 per cent discount rate and an internal rate of return of 24.1 per cent.
The project boasts a 19-year mine life with an expected average annual production of 68,000 tonnes of copper and 3.6 million tonnes of iron concentrate.
Capstone CEO John MacKenzie stated: “The 2024 feasibility study significantly enhances the mine’s economics backed by low capital intensity and first quartile costs.”
He emphasised that Santo Domingo represents a crucial step in Capstone’s growth strategy to become a leading producer of critical metals for global decarbonisation efforts.
Key highlights of the study include:
- The first seven years of production averaged 106,000 tonnes of copper and 3.7 million tonnes of iron concentrate annually
- First quartile cash costs of $0.28 per payable pound of copper in the initial seven years
- Total initial capital cost of $2.3 billion
- Increased Mineral Reserve estimate of 436 million tonnes, with a copper grade of 0.33 per cent
Capstone plans to assess optimal financing structures for the project, potentially including a minority partner.
The company is also advancing several value enhancement initiatives, such as processing Santo Domingo’s oxide material at its nearby Mantoverde mine and exploring cobalt recovery options.
The Santo Domingo project, located 35 kilometres northeast of Capstone’s 70 per cent owned Mantoverde mine, is fully permitted and represents a significant step towards creating a world-class mining district in Chile’s Atacama region.