Candente Copper envisages 28-year, open pit mine at Canariaco Norte in Peru

Candente Copper (TSX: DNT; BVL: DNT; US-OTC: CDOUF) expects to produce 173 million lb. copper a year from its 100% owned Cañariaco Norte copper-gold-silver project 700 km northwest of Lima in Peru, according to a preliminary economic assessment (PEA).  

The early-stage study also estimates annual average production of 31,395 oz. gold and 703,588 oz. silver over a mine life of 28 years, with an initial capital cost estimate of US$1.04 billion and an all-in capital cost of US$1.57 billion.  

The PEA envisioned a conventional truck and shovel open pit mine that would extract 702.7 million tonnes of mineralized material and 465.3 million tonnes of waste over the projected two years of pre-production and 28-year operating life.  

At an 8% discount rate, the project would generate a post-tax net present value of US$1.01 billion and a post-tax internal rate of return of 16.3% using metal prices of US$3.50 per lb. copper, US$1,650 per oz. gold and US$21.50 per oz. silver.  

An earlier pre-feasibility study published in 2011 predicted average annual production of 262 million lb. copper, 37,000 oz. gold and 850,000 oz. silver over a 22-year mine life. That study estimated all-in capital costs of US$1.56 billion.