Finders needs $118m to develop Wetar copper project

Australian mining firm Finders Resources Limited said Thursday that its Wetar Copper Project Definitive Feasibility Study (DFS) results indicated an economically feasible with a mine life of approximately nine years.

Life of mine operating costs are estimated to be US$1.00/lb Cu and the project has a total funding requirement of up to $118 million, the company said.

These capital estimates include a total of almost US$40 million in indirect costs included in vendor and contractor quotations, principally for the earth-moving component of the initial pre-strip and pad construction and for EPCM (overall management and delivery), it said.

After review of the DFS results, the Finders board has approved that the project development will comprise of three stages, with stage 1 uses expanded heap leach areas all within the footprint of the existing disturbed area from previous mining at the Kali Kuning deposit. It significantly reduces the construction risk in Stage 2.

The timeline for achieving stage 1 production is expected to be five months after completion of the permitting process.

Stage 2 comprises expansion to 23,000 tpa copper cathode, comprising of on-going production of 5,000 tpa from the expanded demonstration plant plus an additional 18,000 tpa, utilizing a newly constructed pad area in the adjacent Kali Kuning valley and the Whim Creek SX-EW plant.

Subject to obtaining project finance, full capacity cathode production is expected to be reached within 12 months of stage 1 completion.

Stage 3 development envisages additional ore feed from the Lerokis deposit to maintain full production levels at the existing plant and is expected to commence in year 3 of operations.

Finders and its local partner, PT Batutua Kharisma Permai, have been working closely with the appropriate authorities in preparation of all supporting documents ready for an application for a mining permit.

Key results from the DFS on a 100% project basis, using the approximate current spot copper price of US$6,500/t are summarized below. (denny)

Ore Tonnes*	8.4 Million tonnes (Mt)
Strip Ratio	1.0
?	?
Life of Mine (LOM) Production	146,000 Tonnes cathode
Mine Life	8.7 Years
Average Grade (LOM)	2.5% Cu
Average recovery (LOM)	71%
?	?
Average operating cost (LOM)	US$ 1.00 per lb Cu
Capital - Stage 1 /EDP	US$ 12 million
Capital - Stage 2 / including Whim Creek	US$ 91 million
Corking Capital	US$ 15 million
?	?
Pre-tax Payback (Stages 1&2)	1.4 years
Pre-tax NPV10	US$ 240 million
Pre-tax IRR	60%
Note: * Includes 0.2Mt of inferred Resource within the pit shell