Inca Pacific releases feasibility on Magistral

Vancouverite Inca Pacific Resources (TSX-V, BVL: IPR) has released the final feasibility study for its Magistral copper-molybdenum project in Peru's Ancash department.

The study outlines a 2011 startup and 7Mt annual throughput for a 15-year mine life to produce 34,100t/y of copper and 2,860t/y molybdenum, the company said in a statement, adding the strip ratio is 2.2:1.

The project has a US$146mn net present value at an after-tax 8% discount rate and an internal rate of return of 14.9%. The study also determined a capital payback of 3.3 years for an initial capital expenditure of US$402mn.

"I am very pleased that, while capital costs have escalated, we do have a robust project with a rapid payback," Inca Pacific CEO Anthony Floyd said in the statement.

The company must present at least one letter from a financial institution backing the project to the government of Peru for the feasibility to be considered bankable.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 6, 2007

No comments: