Explore the geometry of Constancia Copper Mine Project,
Cusco, Peru, through detailed Google satellite imagery. To Pan: click and drag
the map. Take advantage of the zoom bars.
In 2011, Hudbay acquired Norsemont Mining Inc. and its wholly owned Constancia copper porphyry project located in southern Peru. When Constancia reaches full production,
the total copper production is expected to grow by approximately 255%. Constancia
will also contribute to precious metals
production, which is expected to
increase by 135% during the same period.
Hudbay Begins Construction of Constancia Copper Mine in Peru and Announces Precious Metals Stream Transaction
TORONTO, ONTARIO--(Marketwire - Aug. 8, 2012) - HudBay Minerals Inc. ("Hudbay" or the "company") (TSX:HBM)(NYSE:HBM) today announced its board of directors has approved a US$1.5 billion investment to fund the development and construction of its Constancia copper mine in Peru. In addition, Hudbay announced it has entered into a precious metals stream transaction with Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) ("Silver Wheaton") providing for upfront deposit payments of US$750 million.
Based on the project's capital cost estimate of US$1.5 billion, the Constancia mine is estimated to generate an unlevered internal rate of return of 14.5% and a net present value of US$571 million, assuming a discount rate of 8.0% and long-term copper prices of US$2.75/lb.In 2011
Hudbay is also arranging a new US$600 million credit facility from a syndicate of Canadian and international banks. With approximately US$2 billion of capital spending remaining on the Constancia, Lalor and Reed projects, Hudbay expects to fund this requirement with a combination of US$710 million in cash on hand as at June 30, 2012, operating cash flow, and the funds received under the stream transaction and credit facility.
Norsemont: Development capital for Constancia mine anticipated at US$920 million,
Lima, Jan. 28, 2011. Source
Norsemont Mining reported Friday that development capital for its Constancia copper project in Cusco, is anticipated at US$920 million, based on the the results of an optimised feasibility study, which also sees a boost to the deposit's in-pit reserves and an extension to the life of the mine.
"The study delivers an economically robust, technically credible and environmentally sound development plan for the Constancia project," said CEO Patrick Evans.
The goal of the Constancia optimization study, which is based on the Constancia and San Jose zones of mineralisation, was to evaluate the potential to increase mine throughput during the later years of the projected mine life to an average of 70,000 tonnes per day. The new feasibility study supports this target, the company said.
A review of the in-pit reserves was also carried out as part of the new study, and as a result of increasing metal prices to reflect current markets, in-pit reserves were increased by roughly 34% to a total of 372 billion tonnes, while the life of the mine was extended by one year to a total of 16 years.
"The results of the new study have provided for a more robust LOM throughput which equates to an increase in average annual concentrate production by approximately 28%," added president and COO Bob Baxter.
The Constancia copper deposit is a large-scale porphyry deposit located in an established mining district in the highlands of southern Peru. According to the study, it is estimated that average annual production will be 170 million pounds of recovered copper.
Other base case results from the optimized study were within the range of previous reports.
The projected after-tax net present value, at a discount rate of 8%, is $810 million, with an 23% internal rate of return and an estimated payback period of three years.
The company said the average operating cost is projected at $1.17 per tonne mined.
Norsemont is expecting results from the surrounding Pampacancha scoping study in the second quarter, which could potentially increase the Constancia resource.
Measured resources at Constancia now stand at 138 million tonnes at 0.44% Cu and 254 million tonnes
of indicated at 0.42% Cu, at a 0.2% Cu
Norsemont Mining Inc. is a Canadian exploration and development company focused on the 100 percent-controlled Constancia copper-molybdenum-silver property in Peru, South America. Located on Peru’s southern highlands, the Constancia project is one of the premier independent advanced stage copper development projects in South America. Norsemont has completed a positive definitive feasibility study for the Constancia project and is currently completing an environmental and social impact assessment in preparation for permitting. Norsemont’s primary goal is to continue expanding the Constancia global resource base through the exploration of additional discoveries within the immediate vicinity of Constancia deposit. Norsemont is directed by an experienced management team with a proven track record of success.