World Copper PEA for Escalones offers post-tax NPV of US$1.5B, payback in 2.2 years

The initial capital requirement at Escalones is US$428.4 million, followed by a sustaining investment of US$192.5 million over the 20-year life of the project. Payback of the initial capex will occur after 2.2 years.

The average annual copper production during the first five years of operation will be 124.7 million lb. at an all-in sustaining cost of US$1.42 per lb. of copper. During that time, the head grade should average 0.49% copper.

At a copper price of US$3.20 per lb., Escalones has post-tax numbers including a net present value, with an 8% discount rate, of US$1.5 million and an internal rate of return of 46.2%.

“Escalones has several attributes that make it attractive for development including robust economics, strong value metrics and the potential of rapid returns for a comparably low capital investment,” World Copper president and CEO Nolan Peterson said in a release. “These factors combine leading to a profitability index in the top quartile of peer group companies with a capital intensity in the bottom quartile. Furthermore, the project’s lowest quartile position on the global cash cost curve indicates profitability in even the weakest copper market scenarios.”

The Escalones deposit has an inferred resource of 426.2 million tonnes grading 0.367% copper for 3.4 million contained pounds of acid soluble copper.

More information is posted at www.WorldCopperLtd.com.