Showing posts with label Quaterra Resources. Show all posts
Showing posts with label Quaterra Resources. Show all posts

Wednesday, May 23, 2012

Quaterra sees 41m lb/y copper mine at MacArthur

Vancouver-based Quaterra Resources on Wednesday announced the results of a scoping study at its MacArthur copper property in Nevada, outlining a potential 41-million pound yearly operation coming at a capital cost of $232.7-million.

The project has a net present value of just over $200-million at an 8% discount, and breaks even at a $2.56/lb copper price, the company said.

Copper was trading at around $3.42/lb on Wednesday.

Quaterra, which in April said it was suing the US government for withdrawing land near the Grand Canyon in Utah from future uranium mining, hopes to build an open-pit operation at MacArthur, and process the copper oxide ore as a heap leach operation.

The copper-pregnant solution will then pass through a solvent-extraction electrowinning plant.

The property forms a part of the company’s broader suite of assets in the Yerington copper district.

According to the preliminary economic assessment, the project would have a 24.2% after-tax internal rate of return, and provide capital payback in 3.1 years.

Quaterra CEO Thomas Patton said in a statement that the other properties the company owns around MacArthur could ultimately contribute to even greater copper production and enhanced economics.

“This project looks good now, and we expect that it will get better,” he commented.

Quaterra has exploration joint-ventures with Goldcorp in Mexico and Freeport MacMoRan in the US.

Source: Creamer Media Reporter