Nzuri Copper Ltd. said Oct. 16 that a feasibility study for the proposed stage one development of the Kalongwe oxide copper-cobalt project in the Democratic Republic of the Congo estimated a posttax net present value, discounted at 10%, of US$82 million, an internal rate of return of 55% and a 21-month payback.
CapEx is pegged at US$53.1 million, including US$10.2 million for contingency. Average annual concentrate production, meanwhile, is estimated at 143,000 tonnes per year, at an average seven-year life of mine cost of US$1.35 per pound of copper.
The open pit mine is expected to be constructed over a period of 12 months.
The study was based on a maiden ore reserve of 211,494 tonnes of copper and 25,128 tonnes of cobalt contained in 7.0 million tonnes grading 3.03% copper and 0.36% cobalt, at an assumed price of US$3.00 per pound of copper and US$18.14 per pound of cobalt.
Nzuri will focus on progressing offtake and funding negotiations and advancing the Kalongwe project toward development.