Queensland-based copper explorer Coppermoly Limited (ASX:COY) (“Coppermoly”) is pleased to announce favourable metallurgical tests of samples taken from drill core at its Nakru-1 copper- gold-silver project on New Britain Island, Papua New Guinea (“PNG”).
Flotation tests have demonstrated that normal milling practices are able to give a recovery of 87% of the copper and 53% of the gold.
Using the suggested operating rates in the recently announced Conceptual Mining Study (CMS), these tests indicate a concentrate production of 76,500 tonnes assaying 25.1% copper and 8.30 g/t gold, or 19,200 tonnes of copper per year.
The CMS indicates a Net Present Value (NPV) of US$291million based on 100% ownership, a copper price of $3.34/lb, 10% discount factor and 90% mill recovery after royalties and before company tax. A pre-feasibility study is yet to be conducted.
Assays of the final concentrate indicate that it will be easily sold to smelters with no significant penalties given for various trace elements.
Recoveries of gold may be improved with further test work.
To date, only 27 diamond core drill holes have been completed at Nakru-1 with a maiden Inferred Resource of 38.4 million tonnes grading 0.61% copper + 0.29 g/t gold + 1.80 g/t silver. At this early stage of drilling, the CMS shows that the development of the Nakru-1 copper deposit could be cash flow positive within two years of production using the parameters stated.
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