CHILE – Capstone Mining Corp. of Vancouver says results of the feasibility study are positive for the Santo Domingo iron oxide-copper-gold project in Region III. The project is owned 70% by Capstone and 30% by Korea Resources Corp.
"This positive study shows an unlevered Internal rate of return of 17.9% (27.3% assuming $1 billion of project debt or 60% leverage) at an initial capital cost of $1.7 billion, consistent with our previously issued capital guidance," said Capstone president and CEO Darryn Pylot.
Two open pit mines will be developed at Santo Domingo as well as a 65,000 t/d copper-iron concentrator. In each of the first five years of production, output will average 248 million lb of copper. Over the 18-year life of the project, output will average 128 million lb of copper, 4.2 million tonnes of iron concentrate and 16,000 oz of gold annually.
Capstone expects C1 cash production costs to be $0.49/lb of payable copper (net of by-product iron and gold) in the first five years. On a co-product basis total cash production costs will be $1.50/lb of copper and $43.00/tonne of magnetite iron in concentrate.
The deposit has measured and indicated resources of 514 million tonnes grading 0.31% Cu, 0.040 g/t Au and 25.8% Fe. The inferred resource is 58.1 million tonnes at 0.20% Cu, 0.026 g/t Au and 24.3% Fe. Contained within the resource estimate are proven and probable reserves of 391.7 million tonnes grading 0.30% Cu, 0.04 g/t Au, and 28.2% Fe. Metal contained in the reserves includes 2.57 billion lb of copper, 506.3 oz of gold, and 75.1 million tonnes of iron in concentrate.
Additional details of the Santo Domingo feasibility study are available at CapstoneMining.com.
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