Codelco’s copper production up 10% in August
The BHP-controlled Escondida mine saw production rise 15.5% to 105,300 tons.
Northisle Copper and Gold (TSXV: NCX) has provided an updated resource estimate for its 100%-owned project near Port Hardy, British Columbia, to support a new preliminary economic assessment (PEA), which it expects to publish early in Q1 2025.
The North Island project resource now totals 906 million tonnes indicated grading 0.16% copper, 0.24 g/t gold and 75 ppm molybdenum, for total contained metal of 6.3 billion lb. copper equivalent, plus an additional 214 million tonnes inferred grading 0.12% copper, 0.22 g/t gold and 52 ppm molybdenum for 1.3 billion lb. CuEq.
“The project now boasts over 3 billion lb. of copper and nearly 7 million oz. of gold in indicated resources, making it one of the largest copper and gold porphyries in Canada not currently owned by a major,” Northisle CEO Sam Lee said in a news release.
The updated resource, which integrates the Hushamu, Red Dog and Northwest Expo deposits, represents a culmination of the company’s exploration program over the past four years. The results, according to Lee, will form the basis of a new PEA that contemplates lower initial capital intensity leading to a potentially larger project and longer life of mine.
The previous PEA in 2021 only included the Red Dog and Hushamu deposits, and outlined a 22-year mine life with average annual production of 177 million lb. of CuEq over the first six years, including 112 million lb. of copper, 112,000 oz. of gold and 2.7 million lb. of molybdenum.
The PEA also presented project economics: C$1.1 billion in after-tax net present value (at 8% discount), 19% after-tax internal rate of return, and a payback period of 3.9 years. The project capex is estimated at C$1.4 billion due to existing infrastructure from historical mining, as the North Island project is situated adjacent and northwest of BHP’s now closed Island copper mine.
Shares of Northisle Copper and Gold surged following the resource update, up 8.5% to C$0.44 apiece by noon ET. The company’s market capitalization is estimated at C$106.2 million.
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