Technical study values Candente Copper's Cañariaco project in Peru at US$1B

A preliminary economic assessment of Candente Copper Corp.'s Cañariaco copper project in Peru estimated that the mine would generate a net present value of US$1.01 billion, after taxes and discounted at 8%, with a 16.3% internal rate of return.

The base case in the study used prices of US$3.50 per pound of copper, US$1,650 per ounce of gold and US$21.50 per ounce of silver, the Canadian company said in a Feb. 8 statement.

The study estimated initial capital expenditures of US$1.04 billion for a mine and plant with a throughput capacity of 40,000 tonnes per day. An expansion to 80,000 t/d in the seventh year of operations would require additional capex of US$305 million.

The Cañariaco mine is expected to have annual production of 173 million pounds of copper, 31,395 ounces of gold and 703,588 ounces of silver over a 28-year mine life.

In May 2020, Fortescue Metals Group Ltd. subsidiary Nascent Exploration Pty. Ltd. raised its stake in Candente Copper to 19.92% from 9.72% through a C$1.4 million investment.