Marimaca Copper's Comprehensive Feasibility Study Indicates Robust Economic Prospects
The Marimaca Copper project, led by Marimaca Copper Corp., is making waves in the Chilean mining industry. With a target of becoming a mid-tier copper producer, the project boasts a competitive cost profile and substantial growth potential, making it one of the more attractive copper investment strategies in the current market.
The project's initial capital expenditure, as outlined in the Definitive Feasibility Study (DFS), stands at $587 million. This investment will establish a copper cathode production operation with a production target of 50,000 tonnes per annum (tpa) of copper cathode, over a 13-year mine life.
The project's competitive capital intensity of $11,700 per tonne of annual production capacity is one of its key strengths. This, coupled with its competitive operating costs, places it in the second quartile of global copper projects. The processing approach maximizes copper recovery, with an average life-of-mine copper recovery of 72%.
The Marimaca Copper project also boasts an exceptionally low life-of-mine strip ratio of 0.8:1. This means that for every tonne of ore mined, only 0.8 tonnes of waste material is removed, making the project highly efficient.
The company behind the project is actively seeking financing partners. The objective is to identify preferred financing partners by year-end 2025. Multiple potential funding sources are being evaluated, including traditional project finance, strategic investments, and equipment financing. Financial advisors and technical experts have been engaged to structure financing packages.
The Marimaca Copper project demonstrates robust economics across various copper price scenarios. The DFS is underpinned by a substantial resource, with Maiden Proven and Probable Mineral Reserves of 178.6 million tonnes at 0.42% total copper.
The project's favourable location, combined with its simple technical characteristics and experienced management team, provides confidence in successful execution. The company has identified multiple avenues for production expansion and mine life extension, including converting Inferred Resources, developing nearby oxide deposits, exploring sulphide mineralization, and scaling infrastructure.
The identified growth pipeline offers potential for value creation beyond the base case development scenario. Early production years will focus on green oxides (brochantite and chrysocolla), transitioning to enriched secondary sulphides and WAD material in later years.
The water and power infrastructure costs are structured on a Build-Own-Operate-Transfer basis, reducing upfront capital requirements while reflecting ongoing operating costs. The company is currently completing the environmental permitting process, advancing debt financing discussions, progressing the Preliminary Economic Assessment for the Pampa Medina deposit, continuing exploration of sulphide potential beneath the main oxide deposit, finalizing detailed engineering and construction planning, and engaging with potential strategic partners for project development.
In conclusion, the Marimaca Copper project is a promising development with a strong competitive position in the global copper market. With its low capital intensity, competitive operating costs, and substantial growth potential, it presents an attractive investment opportunity for those looking to capitalize on the demand for copper in the coming years.
