Copper development project found to be cost-effective in feasibility study at Marimaca site

The Marimaca Copper project, located in Chile's premier mining jurisdiction, is poised to become one of the most capital-efficient copper development projects globally. The project's economic profile is particularly compelling, standing out against the broader industry where rising capital costs have challenged project economics.

The project targets annual production of 50,000 tonnes of copper cathode, with a clear pathway to expand beyond 70,000 tonnes through the development of satellite deposits. This production scale is significantly smaller, by at least one order of magnitude, compared to major copper developments.

The Marimaca project benefits from several engineering advantages that contribute to its favorable economics and operational simplicity. Its location in Chile's established mining jurisdiction, the oxide nature of the deposit enabling conventional heap leach processing, and its location at a relatively low altitude of under 1,000 meters are key factors.

The global copper market faces a structural supply-demand imbalance, driven primarily by electrification and renewable energy infrastructure deployment. The International Energy Agency projects copper demand will double by 2040. This fundamental support for higher long-term pricing creates exceptional opportunities for quality development projects like Marimaca.

Copper supply constraints compound demand growth from the energy transition. Major copper mines are aging with declining ore grades globally, further exacerbating the supply-demand imbalance. Discovery rates for large-scale deposits have fallen dramatically, making projects like Marimaca even more valuable.

The Marimaca project will utilize seawater through a dedicated pipeline system to address sustainability concerns in Chile's Atacama region. The company has also secured an option to acquire a used sulfuric acid plant, providing 30-40% of the project's base case acid requirements at a fraction of the cost of a new facility.

The Definitive Feasibility Study (DFS) outlines a production profile that emphasizes consistent output with strong early performance. Steady-state production between years 2-10 averages 49,000 tonnes annually, with first five years production averaging 50,000 tonnes of copper cathode. The life-of-mine average is 43,000 tonnes over 13 years.

Key timeline targets for project development include Environmental Impact Assessment (RCA) approval targeted by end of 2025, debt financing package expected to be announced by year-end 2025, and construction commencement targeted for Q3 2026.

The project's payback period is approximately 2.9 years at the base case copper price of $4.30/lb. Key economic highlights from the Feasibility Study include a post-tax NPV of $709 million at $4.30/lb copper price with a 31% IRR, potential to exceed $1 billion NPV at higher copper price scenarios, pre-production capital expenditure of $587 million, first five years C1 cash costs of $1.45/lb and AISC of $1.97/lb, and life-of-mine C1 costs of $1.84/lb and AISC of $2.29/lb.

Management has implemented a proactive approach to operational risk management, particularly focusing on sulfuric acid price volatility, which represents one of the most significant input cost variables. Recent M&A transactions demonstrate strategic value of near-term copper projects, further underscoring the potential of the Marimaca project.

Marimaca's growth strategy encompasses multiple pathways to increase production from the initial 50,000 tonnes to over 70,000 tonnes annually through systematic development of satellite deposits. The average lead time from discovery to production exceeds 15 years, making projects like Marimaca, which are moving swiftly towards production, even more valuable.

Geopolitical considerations increase the premium for stable jurisdictions, making Chile, with its established infrastructure, experienced workforce, and favorable regulatory framework, an attractive location for projects like Marimaca. The project's engineering advantages, favourable economics, and strategic location make it a promising development in the global copper industry.

Copper development project found to be cost-effective in feasibility study at Marimaca site