SPAIN – Toronto-based INMET MINING has acquired a 70% indirect interest in the Las Cruces copper project in Spain. Inmet issued 5.6 million common shares to MK RESOURCES, a subsidiary of LEUCADIA NATIONAL CORP.
The Las Cruces project is a high-grade copper deposit, located approximately 20 km northwest of Seville. The deposit will be mined primarily as an open pit mine, and copper cathode will be produced on site applying OUTOKUMPU atmospheric leaching and conventional SX/EW technology. Proven and probable reserves are estimated to total 16 million tonnes grading 6.6% Cu.
The feasibility study construction costs were estimated to be approximately 290 million (Cdn$427 million). In addition, interest, reclamation, bonding requirements and other financing costs are expected to be 46 million. The central and regional governments in Spain have agreed to provide subsidies amounting to approximately 53 million, subject to the completion of construction activities and reaching certain employment levels.
Las Cruces is expected to commence commissioning of the production facilities early in 2008 and reach full capacity by the middle of 2008. The feasibility study estimates a mine life of 15 years at a cash operating cost of US$0.40/lb at current exchange rates.
Inmet’s president and COO, Jochen Tilk, said in a news release, “Las Cruces is a significant development project for Inmet. With the excellent project team we now have in place and the expertise provided by SNC LAVALIN and Outokumpu, we are confident that Las Cruces will contribute to Inmet’s growth by delivering low-cost copper production in 2008.”
Details of the Las Cruces project were not yet posted at www.InmetMining.com at press time, but details of the company’s mines in Canada, Turkey, Finland and Papua New Guinea are available.