VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/09/13 -- Lumina Copper Corp ("Lumina") (TSX VENTURE: LCC) is pleased to announce the results of a Preliminary Economic Assessment (the "PEA" or the "Study") on its 100% owned Taca Taca copper/gold/molybdenum project located in the Puna region of Salta Province in northwestern Argentina. The results of the PEA show that a mining and sulfide concentrating operation at Taca Taca (the "Project") has favourable economic potential generating, at an 8% discount rate and $2.75/lb copper price, an estimated after tax net present value ("NPV") of $2.1 billion and an estimated after tax internal rate of return ("IRR") of 17.2%.
The PEA has evaluated the merits of constructing a mine and concentrator at Taca Taca to produce copper (including a gold by-product) and molybdenum concentrates. The Study was based upon a mine operating over a 28 year mine life delivering 120,000 tonnes per day of throughput (for an initial period of seven years) to an industry standard designed mill and concentration plant comprising two mill and flotation lines. An expansion of the concentrator, by way of a third line, to accommodate a total throughput of 180,000 tonnes per day from year eight onwards has been included in the evaluation.
Highlights of the Study's various estimates are as follows:
-- Robust Project economics driven by a large mineral resource base, a higher grade starter pit (average plant feed grade of 0.72% copper for the first seven years of operation) and excellent regional infrastructure (railway line, available power and port) supporting a lower than average capital intensity ratio on initial capital.-- An estimated after tax NPV of $2.1 billion, at an 8% discount rate, and an estimated after tax IRR of 17.2%.-- Assumed long term metal prices of $2.75/lb copper, $1,200/oz gold and $12/lb molybdenum.-- Average life of mine ("LOM") copper production of approximately 244,000 tonnes per year over a 28 year mine life. LOM gold production will average 110,000 ounces per year, while molybdenum production will average 4,100 tonnes per year. Copper production over the first seven years of the mine's life will average 271,000 tonnes per year with a peak in year two of 349,000 tonnes of copper.-- C-1 LOM cash costs (net of by-product credits) estimated to average $1.11 per pound of copper sold.-- Initial capital of $3.0 billion and total LOM sustaining capital of $1.8 billion. The sustaining capital includes the addition of a third mill and flotation line and associated infrastructure and equipment to the concentrator during the sixth and seventh years of production ($431 million).-- A capital intensity ratio on initial capital of $11,090 per tonne of average annual copper produced for the first seven years of production.-- Capital payback on initial capital is expected to be 3.8 years after production begins.-- The Project is expected to generate approximately 1,100 full-time jobs. During the initial four years of pre-production, including 30 month concentrator construction period, approximately 1,300 direct jobs will be generated.-- The Project will potentially generate $9.5 billion in taxes and government royalties payable to the Argentine and Salta governments.