OXR oxiana limited

Oxiana Copper BFS summary

  1. 470 Posts.
    OXIANA RESOURCES NL 2002-09-12 ASX-SIGNAL-G

    HOMEX - Melbourne

    +++++++++++++++++++++++++
    MEDIA RELEASE

    SEPON PROJECT 80% OXIANA, 20% RIO TINTO
    SEPON COPPER PROJECT : BANKABLE FEASIBILITY STUDY (BFS)

    Oxiana is now finalising the Sepon Copper Project BFS. Preliminary
    results demonstrate a highly competitive project with world class
    characteristics.

    HIGHLIGHTS

    A summary of the highlights of the copper base case on a full project
    basis is provided below:

    Resources 26 Mt @ 4.1% Cu (1.0% Cut Off) for 1.1 Mt copper
    Mining Reserve 13.5 Mt @ 5.1% Cu
    _________________________________________________
    Process Whole of Ore Leach, Solvent Extraction,
    Electrowinning
    Metallurgical Recovery +90%
    Production 60,000 t/a LME Grade Copper Cathodes
    Initial Mine Life 11 years
    _________________________________________________
    Capital Cost Estimate US$155 170 M
    Cash Operating Cost Estimate US 35-40/lb Copper
    _________________________________________________
    Internal Rate of Return At US 85/lb Copper Price
    22%
    Average Operating Cash Flow US$60M/a
    Payback Period <3 years
    _________________________________________________

    Oxiana's Sepon Project development strategy is on track : the Gold
    Project, now under construction, is to be commissioned end 2002 and
    will provide strong early cash flows : the Copper Project is proposed
    to commence early 2003, for first copper production early 2005. In
    terms of both capital and operating costs the Sepon Copper Project
    will be a world class operation.

    MORE TO FOLLOW

 
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