While waiting for Jorc i had a look at another Namibian miner announced an Preliminary Economic Assessment some weeks ago:
Canadian listed Deep South Resources
https://www.deepsouthresources.com/projects/technical-reports/
They have a Copper sulphide project with on a first glance very poor Cu-grades of 0,31%.
Nevertheless PEA figures looks great:
- Low capex of about 190 US$ for a big 8,5 mtpa mining operation
- At current Cu prices NPV 500 US$m after tax
- What impresses me the most also in relation to CLA:
They show mining costs of 0,40 US$/lb and produce 47 Mio Cu lbs per year -> total mining costs 19 US$m p.a.
With a strip ratio of 2:1 and a 8,5 mtpa mining operation they have to move 25 mt ore p.a.
19 US$m/25 mt = incredible low 0,8 US$ per tonne ore/waste.
If we calculate with a horrible strip ratio of 10:1 (what CLA might have in the first years of open pit mining) total mining costs per tonne co/cu-ore would be 9 US$/t.
Doesn't look like a show-stopper for a project like Opuwo with grades of currently 2,4% Cu equivalent.
Namibia seems to be a great place for low cost mining.
An interview with the CEO of Deep River Resources:
https://midasletter.com/2018/04/video-deep-south-resources-inc-talks-billions-of-pounds-of-copper/
Very interesting what he's saying about sulphite ore:
James West: Now, the grade 0.31, is that sufficient to put in a mine into production?
Pierre Leveille: Not in all the cases, but in this case, yes, because it’s a pure sulphite project. There’s literally no oxide.
James West: Okay.
Pierre Leveille: But this sulphite is reacting very well with heat leaching. So the only problem was the time of reaction, but using bioreactors, we can enhance that time of reaction substantially and it’s now about four months
Disclaimer:
I don't own any shares of Deep South Resources
