Deep-South Resources Inc. announced Feb. 26 that a preliminary economic assessment for the Haib copper project in Namibia estimated a net present value, discounted at 7.5%, of US$463.1 million, an internal rate of return of 23% and a 5.7-year payback period based on throughput of 8.5 million tonnes per annum spanning a 55-year mine life.
Parameters used in the PEA was a resource of 3.12 billion pounds of copper contained in 456.9 million tonnes grading 0.31% copper at a 0.25% cutoff in the indicated category and a copper price of US$3.00 per pound.
Initial CapEx for the open pit operation is pegged at US$191.8 million.
Annual production is estimated at 47 million pounds of copper equivalent.
Assuming a ramp-up to throughput of 20 million tonnes per annum, the net present value, discounted at 7.5%, will increase to US$854.9 million, an internal rate of return of 28.6% and a 4.5-year payback period. Mine life will be shortened to 24 years.
The company initially considered four copper recovery options, with the option using an ore sorter upgrading and heap leaching of the upgraded material used for the PEA. A further study considering the PEA parameters as well as a whole-ore heap leaching copper recovery option will be evaluated through further test work and a pre-feasibility study.