Filo Mining Corp.'s pre-feasibility study at its Filo del Sol copper-gold-silver project estimated a posttax net present value, discounted at 8%, of US$1.28 billion and a 23% internal rate of return.
The project, on the border of Chile's Region III and Argentina's San Juan province, is estimated to annually produce 67,000 tonnes of copper, 159,000 ounces of gold and 8.7 million ounces of silver, based on 12 years of leaching, according to a Jan. 14 release.
During the 14-year mine life, including pre-stripping, Filo del Sol is expected to produce about 1.75 billion pounds of copper as cathode and 1.92 million ounces of gold and 104 million ounces of silver as doré.
The project is estimated to generated undiscounted posttax cash flow of US$3.23 billion, based on metal prices of US$3.00 per pound for copper, US$1,300 per ounce for gold and US$20 per ounce for silver.
Initial capital expenditures are expected at US$1.27 billion, with life-of-mine sustaining costs of US$217 million and closure costs of US$51 million.
The study envisages open pit mining at Filo del Sol. Ore will be trucked to a conventional two-stage crusher with a capacity of 60,000 tonnes per day. The study incorporated planning for a fully autonomous haul-truck fleet.
Filo del Sol hosts proven and probable reserves of 259.1 million tonnes containing 2.23 billion pounds of copper, 2.8 million ounces of gold and 126 million ounces of silver.
The mineral reserves are part of mineral resources totaling 425.1 million tonnes in the indicated category containing 3.11 billion pounds of copper, 4.4 million ounces of gold and 146.9 million ounces of silver, and 175.1 million tonnes in the inferred category containing 1.06 billion pounds of copper, 1.8 million ounces of gold and 34.8 million ounces of silver.
A preliminary economic assessment in November 2017 for Filo del Sol outlined a posttax NPV of US$705 million, with a 23% internal rate of return and a 3.6-year payback period.