Cañariaco Norte - Copper-Gold-Silver

A Large Scale Open Pit Copper Project in Peru

The Cañariaco Norte Copper Project proposed minesite

Cañariaco Norte is a 100% owned porphyry copper deposit within a prolific trend of producing mines and known deposits in northern Peru.

Since 2004, Candente Copper has drilled more than 72,000m in over 240 drill holes to define a 7.5B pounds Measured and Indicated, plus 1.4B pounds Inferred Porphyry Copper Deposit, with excellent expansion potential through two nearby, 100% owned porphyry targets.

In March 2011, the Pre-Feasibility Study Progress Report was completed and returned exceptional economics, with an after-tax (restated in January 2017 following changes to the Peruvian mining taxation laws) Net Present Value of US$922M, an Internal Rate of Return of 17.3%, and a payback period of 4.4 years using the base case US$2.25 copper and an 8% discount rate.

Cañariaco Norte Pre-Feasibility Study Progress Report Highlights:

  • 260M lbs Cu per year (39,000 oz Au per year & 911,000 oz Ag per year)
  • 22 Year Initial Mine Life @ 95,000 tonnes per day
  • 4.4 Year Payback Period @ Cu $2.50/lb
  • Preproduction CAPEX $1.56B
  • Operating costs of US$0.988/lb Cu
  • Minimal infrastructure required, excellent locations for all site facilities, close to existing highway and power grid and abundant water at site

 

 

Sensitivities (8% discount, after tax)

Gold

 

Copper Price US$/lb

US$/oz

 

$3.25

$3.50

$3.75

$4.00

$1,750

 NPV

$1.985

$2.278

$2.573

$2.865

 

 IRR

24.8%

27.0%

29.1%

31.2%

$1,500

 NPV

$1.941

$2.322

$2.527

$2.822

 

 IRR

24.5%

26.7%

28.2%

30.9%

From April 2011 to June 2013, the Company engaged in certain aspects of a definitive Feasibility Study. During that time, metallurgical drilling was completed; 50% of geotechnical drilling was conducted; site layout, process plant, infrastructure and ancillary facilities design was well advanced; preliminary mine design was completed; and the Environmental and Social Impact study was approximately 80% completed.

Ausenco Engineering recently completed a Desk Top Conceptual Study that identified several opportunities with the potential to lower initial capital expenditures (“CapEx”) and operating expenses (“OpEx”) while also enhancing our environmental, social and governance (“ESG”) practices.

Summary of significant developments: 

1. Mitigation of the need for a roaster, both for a smaller and larger project, which could significantly reduce both CapEx and OpEx costs and improve ESG practices.

2. The potential viability of the project at various concentrator throughputs including 40,000; 50,000; and 60,000 tonners per day.

3. Evaluation of a staged expansion with a smaller throughput for a lower initial CapEx, then expanding after payback using mine cash flow indicates this could be an attractive development strategy.

4. The application of the best available technology for tailings that considers both wet and dry stack tailings storage methodologies which could improve ESG practices and appears viable.  This should be assessed in more detail.

The new parameters from the study will be included in an updated Preliminary Economic Assessment.

Cañariaco Norte Copper Deposit location map

A portion of the Cañariaco Norte Copper Deposit with selected drill holes collars superimposed
Cañariaco Norte location and Regional Infrastructure

Resources

The Cañariaco Norte Copper Project is a single, contiguous, open-pit mineable deposit containing:

  • Measured and Indicated Resources
    752.4 million tonnes grading 0.45% copper containing 7.533 billion pounds of copper
  • Inferred Resources
    157.7 million tonnes grading 0.41% copper containing 1.434 billion pounds of copper

Cañariaco Norte 0.30% Cutoff

Contained Metal

Resource 
Classification

tonnes
(M)

Cu Eq*

Cu Eq**

Cu

Au
(g/t)

Ag
(g/t)

Copper
(B lbs)

Gold
(M Ozs)

Silver 
(M Ozs)

Measured

338.1

0.55%

0.52%

0.48%

0.08

2.0

3.587

0.870

21.635

Indicated

414.3

0.49%

0.46%

0.43%

0.06

1.8

3.945

0.799

23.602

Measured+ 
Indicated

752.4

0.52%

0.49%

0.45%

0.07

1.9

7.533

1.669

45.237

Inferred

157.7

0.47%

0.44%

0.41%

0.06

1.8

1.434

0.304

8.932

Cañariaco Norte Mineral Resource Estimate at the Base Case 0.30% Copper Cut-off Grade 
(refer to 
DNT NR 010 for details)

Cañariaco Norte Mineral Resource Block Model with 22 and 33 year Pit Shell Outlines

Cañariaco Sur - A New Cu Au Porphyry System!

Exploration drilling at Cañariaco Sur has confirmed the presence of a large copper-gold-silver porphyry system with long intercepts of economic type grades within open pittable depths.

The mineralization is open in three directions and at depth. Thirteen wide spaced holes (200-300 metres) have copper-gold-silver mineralization from surface to 500 meters depth.

These holes, along with five holes from previous drilling confirm the presence of a large system. Interestingly, based on the drilling completed to date at Sur, there is extremely low arsenic in the system.

Due to the close proximity of Sur to Cañariaco Norte (less than 2 kms) and the possibility to share use of facilities planned for Cañariaco Norte, management is confident that Sur has excellent potential to become a mineable deposit, thereby increasing the potential size and scope of the overall project.

 

Cañariaco Norte, Cañariaco Sur and Quebrada Verde relative location and Geochemical / Geophysical Targets


(More details available on the Cañariaco Sur Project Page)

Quebrada Verde

  • Located 3.5km south of the Cañariaco Norte deposit and immediately south-southwest of Cañariaco Sur, Quebrada Verde is the third porphyry target with excellent copper-gold soil geochemistry and strong coincident geophysical anomalies, such as large IP chargeability high centered on a resistivity anomaly over area of 0.8km by 2.0km.

(More details available on the Quebrada Verde Project Page)

*Copper equivalent grade including gold and silver values and based on 100% metal recoveries. Copper grade equivalent calculation. Cu Eq% =(Cu % + ((Au grade x Au price)+(Ag grade x Ag price))/(22.0462 x Cu price x 31.0135 g/t)

**Copper equivalent grade including gold and silver, metal recoveries (gold 55%; silver 50%) and smelter returns (copper 96.5%: gold 93%; silver 90%) applied. Copper grade equivalent calculation: Cu Eq% =(Cu % + ((Au grade x Au price x Au recovery x Au smelter return%)+(Ag grade x Ag price x Ag recovery x Ag smelter return%))/(22.0462 x Cu price x 31.0135 g/t x Cu recovery x Cu smelter return%)

Subscribe to our Email List