NorthWest Copper announces positive PEA results at Kwanika-Stardust project

Highlights

• The 2023 PEA describes Kwanika-Stardust as a unique project combining manageable initial capital with a significant Cu-Au production profile.
• Peak copper equivalent (CuEq ) production of 152.1 million lb/yr of copper (year 6) and life of mine (LOM) CuEq average production of 90.6 million lb/yr over 11.9 years.
• Total LOM production of 694 million lb Cu, 803 000 oz Au, and 3 204 000 oz Ag (1,078 Mlbs CuEq).
• Average cash operating costs of US$1.58/lb CuEq (US$0.44/lb Cu on a by-product 4 basis).
• Average all-in sustaining cost (AISC) of US$2.01/lb CuEq (US$1.12/lb Cu on a by-product basis).
• Initial capital of CAN$567.9 million, with a construction period of two years.
• Attractive economics with NPV (7%) of CAN$440.1 million and IRR of 17.1% pre-tax and NPV (7%) of CAN$215.0 million and IRR of 12.7% after tax.
• At spot prices economics improve, with NPV (7%) of CAN$665.6 million and IRR of 21.7% pre-tax and NPV (7%) of CAN$363.3 million and IRR of 16.4% after tax.
• The 2023 PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves and there is no certainty that the 2023 PEA will be realised.
• Mineral resources include mineralised material from four sources: 
  • Kwanika Central open pit:
    • 30.7 million t of measured resources (0.31% Cu, 0.31 g/t Au, 1.05 g/t Ag).
    • 35.9 million t indicated resources (0.22% Cu, 0.19 g/t Au, 0.80 g/t Ag).
    • 4.1 million t inferred resources (0.15% Cu, 0.15 g/t Au, 0.58 g/t Ag).
  • Kwanika Central underground block cave:
    • 25.6 million t measured resources (0.50% Cu, 0.61 g/t Au, 1.62 g/t Ag).
    • 11.3 million t indicated resources (0.51 Cu%, 0.65 g/t Au, 1.56 g/t Ag).
  • Kwanika South open pit:
    • 25.4 million t inferred resources (0.28 % Cu, 0.06 g/t Au, 1.68 g/t Ag).
  • Stardust underground:
    • 1.6 million t indicated resources (1.49% Cu, 1.63 g/t Au, 30.1 g/t Ag).
    • 4.1 million t inferred resources (1.00% Cu, 1.38 g/t Au, 22.8 g/t Ag).
• Mineral resources that are not mineral reserves do not have demonstrated economic viability.
• NorthWest is committed to working collaboratively with First Nations to ensure that sound cultural and environmental practices based on sustainability and shared value are incorporated into any mine development plans.
• NorthWest will continue to engage based on open communication and collaboration to create benefits for First Nations.
• The project will look to minimise the development impact by using existing infrastructure and processing mineralised material from multiple sources in one central facility.
• The project plans to connect to the BC Hydro electrical grid and will thereby use primarily renewable electricity, reducing the project’s carbon footprint.
• The project could contribute to British Columbia’s and Canada’s critical mineral supply by providing copper, a much-needed element for the green energy transition.

President and CEO Peter Bell, stated;.

“This study is a major step in demonstrating the value created by combining Kwanika and Stardust, the cornerstone deposits of the NorthWest portfolio.”

“We have been describing a project with manageable initial capital and significant copper production to the market since creating the company in 2021. This PEA supports that vision. We are also now working towards advancing the project including exploring whether the nearby 100% owned Lorraine project, located approximately 40 km away, can be developed with the infrastructure contemplated in the Kwanika-Stardust PEA. Conducting the necessary studies to ascertain whether Lorraine can be incorporated into the Kwanika-Stardust project will be the main objective of the company in 2023, as we believe that this will add further value to the strong project we have outlined with this PEA.”

“The focus in Canada is turning to critical minerals, including copper.”

“Our project is extremely well located, has both meaningful scale and manageable capex, benefits from existing infrastructure, has access to renewable power and is in a Tier 1 jurisdiction making it rare and highly valuable. We look forward to working collaboratively with First Nations to advance the project as part of BC and Canada’s push for critical Canadian copper production.”

Read the article online at: https://www.globalminingreview.com/mining/09012023/northwest-copper-announces-positive-pea-results-at-kwanika-stardust-copper-gold-project/