LONDON (Alliance News) - Metminco Ltd shares were volatile in London early Tuesday, after it said an updated Mineral Resource Estimate following detailed geological modelling of the Los Calatos porphyry complex had identified a new higher grade copper development opportunity.
The Australian base metal explorer said the new total mineral resource for the Los Calatos copper project in southern Peru is 352 million tonnes at 0.76% copper and 318 parts per million molybendum at a 0.5% copper cut-off, which comprises all resource categories.
It said it has identified the potentital for a higher grade, lower tonnage copper mine at the site which would target 126 million tonnes at 1.03% copper and 351 parts per million molybendum using a 0.75% copper cut-off, located entirely within the modelled breccia units.
The mining and milling rate of the mine would be 6 million tonnes a year, producing 50,000 tonnes of copper metal.
Metminco said Runge Pincock Minarco will now conduct a mining study to determine the economics of the new mine, and it is scheduled to be completed in mid-July.
"Capital costs for the more focused, smaller, mining operation are expected to be approximately 50% lower, and the copper grade mined significantly higher, than those provided for by RPM in August 2013 for the larger tonnage mining scenario previously envisaged for Los Calatos. Mine life is expected to be greater than 20 years at these production rates," Metminco Managing Director William Howe said.
"Subject to the outcome of this new mining study, Metminco will advance the development of Los Calatos by commencing permitting and Feasibility and Environmental Impact studies as an important next step," he added.
Metminco's London-listed shares rose 12% at the open and then declining 11% minutes later Tuesday morning. The stock was up 1.5% at 0.320 pence some 15 minutes after the open. It is also listed on the Australian Securities Exchange.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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