Earlier this month, McEwen held a challenge growth workshop for its senior administration and representatives from Whittle Consulting (growth situations), Bechtel Corp. (feasibility examine for El Pachon challenge 75 km to the south of Los Azules), Samuel Engineering (challenge administration, controls metallurgy and mill design), Stantec (geology, sources, mining engineering, tailings administration, and water amenities), and McLennan Design (inexperienced constructing strategies). Their work suggests there’s appreciable room to enhance the economics of Los Azules.
The preliminary financial evaluation ready in 2017 for Los Azules put the after-tax internet current worth at $2.2 billion (at an 8% low cost) and the interior charge of return at 20.1%.
The examine outlined an preliminary capex requirement of $2.4 billion with payback occurring after 3.6 years. The mine has a lifetime of 36 years and can produce 415 million lb. of copper yearly for the primary 13 years at a money price of $1.14 per lb. A copper worth of $3 per lb. was used within the examine.
The aim, says McEwen, is to design a mannequin copper mine for the 21st century. It’s going to provide the uncooked materials to allow a greener world, whereas incorporating using renewable power sources to have a low-carbon footprint. Technological innovation will underpin an power environment friendly operation.
There are at present about 280 individuals, 85% of whom are from San Juan, on the Los Azules camp to conduct exploration drilling. Two of the ten rigs have been assembled and drilling will begin Jan. 4. Medical providers and emergency rescue groups have been on website since Dec. 1. An airstrip will probably be constructed to facilitate the motion of individuals throughout the PFS.
Earlier this 12 months, the corporate made a $40 million personal placement and introduced a 53,000-metre drill program to improve sources on the challenge. A second, $40 million personal placement is because of shut in January, leaving McEwen Mining with a 69% share of McEwen Copper.
(This text first appeared within the Canadian Mining Journal)
