New Century Resources claims its Mt Lyell mine in Tasmania is well on the way to becoming one of the most significant near-term copper production assets on the ASX.
New Century managing director Patrick Walta said restart development work to date has delivered an initial ore reserve at Mt Lyell much larger than anticipated, with a mine life projected out greater than 10 years on this figure alone.
“Mt Lyell is also aided by the extensive infrastructure in place and a proven production history of high quality, low-carbon copper, utilising low-cost renewable energy from hydroelectric power,” he said.
“Material upside is clearly evident within the substantial Prince Lyell and Western Tharsis ore bodies, with drilling to occur during 2022 to realise this upside in ore reserve growth.
“The company is well-positioned to bring Mt Lyell through the restart pre-feasibility study (PFS) process and ultimately into production, supplying green copper into a market projected to be in significant supply deficit within the next three to five years.
“Based on the initial ore reserve only, the mine plan has an estimated net present value range of $280 million to $410 million, which clearly demonstrates its economic viability while representing only a small portion of the Project’s overall potential.”
The restart PFS will consider all available mineral inventory and is therefore expected to deliver enhanced project economics.