Omitiomire a ‘stand-out’ copper project – Omico
A bankable feasibility study on Namibian copper explorer and developer Omico Mining’s 95%-owned Omitiomire copper project, in Namibia, has estimated a $224-million net present value.
The study has revealed an 18% internal rate of return after tax, a 3.7-year payback period and a 15 year life-of-mine (LoM).
The study also estimates capital intensity of $12 480/t copper cathode, LoM gross revenue of $3.8-billion, LoM free cash flow of $644-million and C1 cash costs of $5 836/t copper cathode.
The company has noted all-in sustaining costs of $6 133/t of copper and average copper cathode production of 26 800 t/y – a total of 381 650 t of copper cathode produced over the LoM.
The company also notes peak annual production of 32 000 t/y by year two of the operation.
The company notes that a bankable feasibility study was started in 2023 but subsequently paused in order to complete additional metallurgical test work.
The company reports that underpinning the bankable feasibility study (BFS) now is a comprehensive and robust metallurgical test work programme completed over three years comprising four phases and 25 full-size columns.
This work was undertaken by Chilean consultancy firm MJO Ingenieria y Consultores and Metalurgica, and overseen by the project owner's team that includes significant global metallurgical experience, with in excess of 40 years combined experience.
The BFS now incorporates the results from that final phase which has delivered significant economic benefits driven by low acid consumption (9 kg/t) and short leach times – 119 days, says Omico.
“These two important drivers of value make Omitiomire a stand-out copper project,” the company says, adding that the shorter leach time has resulted in a change of strategy on the heap leach design from a static to a dynamic facility.
In addition to this, the solvent extraction has been designed to cope with a high-grade copper solution and the plant throughput has been increased to take into account lower grade ore feed based on lower operating costs, owing to reduced acid consumption and reduced leach time.
Omico says these new extraction rates and the revised processing route materially improve the economics of the project, producing a total of 382 000 t of LME Grade A copper cathode over a 15-year operating mine life using chloride heap leaching with solvent extraction and electrowinning, an established and industry standard hydrometallurgical extraction technology.
“As the manager of this project, we are excited to be able to report an extremely exciting milestone in the Omico development. Against a backdrop of scarce quality copper projects and rising demand, the BFS has defined a highly compelling copper mining operation, on a standalone basis. We look forward to the next phase of development.
“There is no doubt the Phase 4 metallurgical testwork, included in this BFS, is a significant enhancement to the Omitiomire business case. That impact can be gauged in the project’s robust economics and also in the contribution that this generational asset is expected to make to our local communities for years to come. With the anticipated creation of 800 to 1 000 direct jobs and $500-million in LoM royalties and corporate taxes,” says Greenstone Resources partner Mark Sawyer.
Omico is a joint venture between Greenstone Resources LP, a private equity fund specialising in the mining and metals sector, and International Base Metals Limited, an Australian natural resources unlisted public company. The joint venture is managed by Greenstone Resources LP.
-MINING WEEKLY
The study has revealed an 18% internal rate of return after tax, a 3.7-year payback period and a 15 year life-of-mine (LoM).
The study also estimates capital intensity of $12 480/t copper cathode, LoM gross revenue of $3.8-billion, LoM free cash flow of $644-million and C1 cash costs of $5 836/t copper cathode.
The company has noted all-in sustaining costs of $6 133/t of copper and average copper cathode production of 26 800 t/y – a total of 381 650 t of copper cathode produced over the LoM.
The company also notes peak annual production of 32 000 t/y by year two of the operation.
The company notes that a bankable feasibility study was started in 2023 but subsequently paused in order to complete additional metallurgical test work.
The company reports that underpinning the bankable feasibility study (BFS) now is a comprehensive and robust metallurgical test work programme completed over three years comprising four phases and 25 full-size columns.
This work was undertaken by Chilean consultancy firm MJO Ingenieria y Consultores and Metalurgica, and overseen by the project owner's team that includes significant global metallurgical experience, with in excess of 40 years combined experience.
The BFS now incorporates the results from that final phase which has delivered significant economic benefits driven by low acid consumption (9 kg/t) and short leach times – 119 days, says Omico.
“These two important drivers of value make Omitiomire a stand-out copper project,” the company says, adding that the shorter leach time has resulted in a change of strategy on the heap leach design from a static to a dynamic facility.
In addition to this, the solvent extraction has been designed to cope with a high-grade copper solution and the plant throughput has been increased to take into account lower grade ore feed based on lower operating costs, owing to reduced acid consumption and reduced leach time.
Omico says these new extraction rates and the revised processing route materially improve the economics of the project, producing a total of 382 000 t of LME Grade A copper cathode over a 15-year operating mine life using chloride heap leaching with solvent extraction and electrowinning, an established and industry standard hydrometallurgical extraction technology.
“As the manager of this project, we are excited to be able to report an extremely exciting milestone in the Omico development. Against a backdrop of scarce quality copper projects and rising demand, the BFS has defined a highly compelling copper mining operation, on a standalone basis. We look forward to the next phase of development.
“There is no doubt the Phase 4 metallurgical testwork, included in this BFS, is a significant enhancement to the Omitiomire business case. That impact can be gauged in the project’s robust economics and also in the contribution that this generational asset is expected to make to our local communities for years to come. With the anticipated creation of 800 to 1 000 direct jobs and $500-million in LoM royalties and corporate taxes,” says Greenstone Resources partner Mark Sawyer.
Omico is a joint venture between Greenstone Resources LP, a private equity fund specialising in the mining and metals sector, and International Base Metals Limited, an Australian natural resources unlisted public company. The joint venture is managed by Greenstone Resources LP.
-MINING WEEKLY
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