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Cordoba Minerals (TSXV: CDB) has secured a construction permit for the Alacran copper-gold-silver project in Colombia with work set to start by the second quarter next year, assuming it can finance the $420.4 million project.
The Colombian National Mining Agency approved the mining technical work plan filed in November 2021. Cordoba plans to complete detailed mine engineering this year for the project it’s developing with China-based partner JCHX Mining Management.
“The approval means we are one step closer to build the next copper-gold mine in Colombia,” CEO Sarah Armstrong Montoya said in a statement.
Designated a ‘project of national interest,’ the Alacran open-pit, set to be Colombia’s largest copper mine, anchors Cordoba’s San Matias package. JCHX’s $100 million stake, secured in 2022, includes a final $20 million payment tied to the approval of the feasibility study and environmental impact assessment.
The permit approval marks a big milestone for Cordoba as it progresses towards developing what Montoya believes could become Colombia’s next major copper-gold mine.
A December feasibility study for Alacran outlines a $420.4 million cost for the 14.2-year project. The mine plan yields an after-tax net present value of $360 million (at an 8% discount) and an internal rate of return of 23.8%.
The study projects total metal production of 797.2 million lb. of copper, 550,000 oz. of gold, and 5.35 million oz. of silver from probable reserves of 97.9 million tonnes grading 0.41% copper, 0.23 gram gold per tonne and 2.63 grams silver.
In Arizona, Cordoba is spending $14.2 million to earn an 80% share of the Perseverance porphyry copper project in about two years.
At C$0.40 apiece on Thursday, Cordoba shares are up 2.6% over the past 12 months, having touched C$0.42 and C$0.80. It has a market capitalization of C$81.8 million ($60.6m).
