The release of a prefeasibility study estimating that its Twin Metals copper-nickel-platinum group metals joint venture project in Minnesota will cost a hefty US$2.8 billion to build sent Duluth Metals (TSX: DM; USOTC: DULMF) shares tumbling by more than 25% in early afternoon trading.
While Twin Metals’ price tag is high, the study also showed the long life project has positive, if not particularly robust, economics.
The prefeasibility study projected that an underground mine processing 50,000 short tons per day (18.3 million tons per year) at Twin Metals would have a 30-year mine life and a payback period of 6.4 years.
Over its three-decade mine life, the project would produce 5.8 billion lb of copper, 1.2 billion lb of nickel, 1.5 million oz of platinum, 4 million oz of palladium, 1 million oz of gold and 25.2 million oz of silver.
Read the complete article at NorthernMiner.com/news/price-tag