CANDENTE HIGHLIGHTS:
- Canariaco Included in Goldman Sachs 84 Top Copper Projects Worldwide
- Cañariaco in Lowest Quartile of Copper Industry Production Costs
- Definitive Feasibility 50% Complete
- Higher grade throughput of 0.54% CuEqMill Feed Grade during first 3 years
- Rising Copper and Gold Prices Impacting 2011 PFS
- Fortescue Metals Group Ltd. owns 19.92% interest
- Joint technical committee created to identify optimum strategy for Cañariaco development
Project Highlights:
Cañariaco Norte is a 100% owned feasibility-stage porphyry copper deposit
- A single, contiguous, open-pit mineable deposit of 7.5B pounds Measured and Indicated,
- 1.4B pounds Inferred Porphyry Copper Deposit
- Annual production of 262,000,000lbs of copper, 39,000 oz gold & 911,000 oz silver over initial mine life of 22 yrs(@ 95,000 tpd)
Pre-Feasibility Study
- NPV of US $922M and IRR of 17.3% (using US$2.25 copper and an 8% discount rate)
- Payback of preproduction capital in 4.4 years (after-tax)
- Copper Production of 262,000,000 pounds per year
- Initial Mine life of 22 years+
- Throughput rate of 95,000 tonnes per day
- Operating costs of US$0.988 per pound of copper (including onsite/offsite costs, taxes and byproduct credits)
- Minimal infrastructure required, excellent locations for all site facilities, close to existing highway (42km away) and power grid (57km away) & abundant water at site
- Very strong community & regional support
The Cañariaco Norte Copper Project
- Canariaco in Top 80 Deposits slated for Development according to Goldman Sachs
- 42 in South America –Cañariaco Included
- Cañariaco in Lowest Quartile of Copper Industry Production Costs
- Large scale porphyry copper–gold-silver deposit in Northern Peru
- 7.5B pounds Measured and Indicated, plus 1.4B pounds Inferred Porphyry Copper Deposit
- Deposit and Scope of Project Development well defined by Pre-Feasibility Studies in 2011
- Annual production of 262,000,000lbs of copper, 39,000 oz gold & 911,000 oz silver over initial mine life of 22 yrs(@ 95,000 tpd)
- Operating costs of US$0.988 per pound of copper (including onsite/offsite costs, taxes and byproduct credits
- Strong Government support
Resource and Mine Plan
123 Million tonnes @ 0.58% Cu Eq (0.4% Cu cutoff) Measured
752 Million tonnes @ 0.52% Cu Eq (0.3% Cu cutoff) M & Indicated
1.0 Billion tonnes @ 0.46% Cu Eq(0.2% Cu cutoff) M & I
Current Mine Plan 728.2 Million tonnes @ 0.46% CuEqMill Feed Grade
- Higher grade throughput of 0.54% CuEqMill Feed Grade during first 3 years
Canariaco Price Sensitivities Chart
- Rising Copper and Silver Prices dramatically Project Economics
- Based on 2011 Pre-Feasibility Progress Report
