The Preliminary Feasibility Study titled, Independent Technical Report on the Yandera Project – Pre-Feasibility Study*, prepared by Worley Parsons, with an effective date of November 27, 2017, estimated a historical open-pit, Measured and Indicated resources of 728 million tonnes grading 0.39% copper equivalent.
The Pre-Feasibility Study outlines a large and efficient open pit mine producing 33Mt of ore per annum, and a total of 540Mt over a 20-year life of mine, with an average stripping ratio of 1.36. The material will be mined from multiple areas, which will coalesce to form one large pit. The study indicates a NPV of US$1,038 Mil and IRR 23.5% in real terms.* The PFS was prepared prior to the Company acquiring an interest in the Yandera Copper Project, and is derived from historical estimates which the Company is not treating as current. This information is intended to provide readers with context on historical analysis conducted on the Yandera Copper Project, however the Company cautions that a qualified person has not done sufficient work to classify any historical estimates in respect of the Yandera Copper Project as current and any analysis conducted by previous owners of the Yandera Copper Project, may rely upon assumptions which are no longer reasonable or accurate in the context of the current market.
| Freeport Resources ownership: | 100% |
| Location: | 95 km SW of Madang, PNG |
| Resource at 0.15% Cu cut-off: | 959 Mt grading 0.37% CuEq |
| Contained copper: | 3,135,000 tonnes Cu (6.9 billion lbs Cu) |
| Forecast treatment rate: | 33 Mtpa |
| Expected mine life: | 20 years |
| Forecast annual production: | 100,000 tonnes Cu |
| Forecast initial capital costs: | US$930 million |
| Forecast average operating cost: | US$1.95/lb Cu |
| Project post-tax NPV at 10%: | US$1,038 million |
| Project post-financing IRR: | 23.5% |
