Los Andes Copper Announces Positive PFS for Vizcachitas with a US$2.77 Billion Post-Tax NPV and 24% IRR
Los Andes Copper, a Canadian mining company focused on the development of copper deposits, recently announced the results of a positive Preliminary Feasibility Study (PFS) for its Vizcachitas project in Chile. The study revealed a post-tax Net Present Value (NPV) of US$2.77 billion and an Internal Rate of Return (IRR) of 24%, highlighting the project’s significant economic potential.
The Vizcachitas project is located in the Andes mountains of Chile, a region known for its rich mineral deposits. The project is a large-scale, long-life copper mining operation with estimated mineral reserves of 18.8 million tonnes, supporting a mine life of over 45 years. The PFS outlined a conventional open-pit mining operation, with an average annual production of 110,000 tonnes of copper and 149,000 ounces of gold over the first 15 years of operation.
The positive results of the PFS can be attributed to several key factors. The project benefits from its strategic location in a mining-friendly jurisdiction with established infrastructure, including access to power, water, and roads. In addition, the Vizcachitas deposit is characterized by its low strip ratio, allowing for efficient and cost-effective mining operations. The project’s proximity to deep-water ports also facilitates the export of copper concentrate to global markets.
Furthermore, the PFS highlighted the potential for further resource expansion and optimization. Los Andes Copper has identified significant exploration upside within the Vizcachitas project, with opportunities to increase mineral reserves through additional drilling and resource delineation. The company also plans to undertake further metallurgical testing and engineering studies to optimize the project design and enhance its economic viability.
The Vizcachitas project is expected to generate substantial economic benefits for the local community and the broader region. The development of the mine is projected to create hundreds of direct and indirect jobs, providing employment opportunities and contributing to the socio-economic development of the area. In addition, the project will generate royalty payments and taxes for the Chilean government, supporting public infrastructure and social programs.
In conclusion, the positive results of the PFS highlight the strong economic potential of the Vizcachitas project for Los Andes Copper. With its robust financial metrics, strategic location, and opportunities for further optimization, the project is well-positioned to become a major copper producer in the region. The company remains committed to advancing the project through the next stages of development, with a focus on sustainability, responsible mining practices, and stakeholder engagement.