Dupax Note22 Oct 2025 14:14
Dupax has the potential to develop into significant polymetallic mine
The Dupax deposit is interpreted as a medium sized Volcanogenic Massive Sulphide (“VMS”). Previous sampling and mapping returned high gold, copper, and zinc grades, with small scale miners active at the deposit in the past. Better exploration results to date from grab samples include 38g/t gold, 7.59% copper, and 2.5% zinc
(Sample 182111) and 4.25g/t gold, 5.21% copper, and 40.2% zinc (Sample 182106). We have modelled a 2.5Mt/year open pit operation at a strip ratio of 3:1 with ore trucked up to the plant at Runruno, a distance of 20km. The plant would need to be modified to include a flotation circuit to produce copper and zinc concentrates as well as the gold doré. We assume initial capex, including plant modifications, haul
road, pre stripping, and upgrading the tailings storage facility should cost US$30m with a further US$30m one year pre-production. On a gold equivalent basis the project would produce 230koz at a cash cost of US$750/oz and an AISC of US$980/oz with a mine life of 10 years. Using these inputs, we calculate an NPV10 of US$2bn if the project were to be developed on this basis; however, we currently attribute no value to it in our valuation ahead of the current phase of exploration. Dupax has the potential to be transformational in terms of our valuation for MTL and would also result in the company having two operations from 2027 rather than one, with the start up of La India dovetailing with the planned closure of Runruno following depletion.
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