Looks like they qualifty for $40M from JCHX once teh study is approved. Seems like big news to me!
The 2023 Feasibility Study Results Demonstrate an Economically Attractive Project, with an After-Tax Net Present Value of US$359 million, and an Internal Rate of Return of 23.8% with a payback period of 3 years
VANCOUVER, BRITISH COLUMBIA – Sarah Armstrong-Montoya, President and Chief Executive Officer of Cordoba Minerals Corp. (TSXV:CDB; OTCQB:CDBMF) (“Cordoba” or the “Company”) is pleased to announce that Cordoba has completed a Feasibility Study (“Feasibility Study”) prepared in accordance with the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for the Company’s flagship Alacran Project (“Alacran or Project”). The Board of Directors for Cordoba unanimously approved the completion and filing of the Feasibility Study on December, 14, 2023. Information from the Feasibility Study has been used as the basis for the Environmental Impact Assessment (“EIA”).
The Alacran Project is situated in the municipality of Puerto Libertador, which is approximately 390 km northwest of Bogot, and 160km north of Medelln in Colombia, amongst 22 mining concessions owned by the Company, of which, 5 licenses are part of the Alacran Project. The Company conducted several exploration programs between 2012 and 2023, consisting of geological mapping, geochemical sampling, geophysical surveys, and various drilling campaigns, that supported the completion of the 2019 Preliminary Economic Assessment, the 2022 Pre-Feasibility Study, and the current 2023 Feasibility Study, which marks the beginning of the development phase for the Project.
Key highlights of the Feasibility Study:
- Initial Capital Cost (“CAPEX”) is estimated to be approximately US$420.4 million for the construction of a conventional truck-shovel open pit mine;
- The Project is anticipated to hold an after-tax Net Present Value (“NPV”) of US$360 million with an Internal Rate of Return (“IRR”) of 23.8% and a payback period of 3 years;
- The Project’s mine life is projected to be 14.2 years in addition to the estimated two years of construction and pre-production mining, of which, freshly mined ore will be stockpiled alongside historical tailings;
- The life of mine (“LOM”) cash costs for copper, net of by-product, is US$1.35/lb with by-product credits at US$1.31/lb, and a total LOM cash cost at US$2.66/lb; (cash costs excludes sustaining capital);
- The average mining rate for the project is projected to be 39.5 Mt of mined material per year of which ore material will be fed to dual processing plants consisting of a main processing facility for fresh and transition material, and a separate wash gravity plant for saprolite ore and historical tailings;
- The Company filed the EIA application with the relevant Colombian Government authority on December 11, 2023 and was issued the official filing number on December 12, 2023;
- In accordance with the Strategic Framework Agreement (“Strategic Agreement”) signed with joint-development partner JCHX Mining Management Co., Ltd. (“JCHX”), the second installment of US$40 million will be payable by JCHX to the Company within ten business days subsequent to the approval of the Feasibility Study by the Cordoba Board of Directors and the filing of the EIA application (see further details below).
A technical report prepared in accordance with NI 43-101 will be filed on SEDAR+ at www.sedarplus.com and on Cordoba’s website at www.cordobaminerals.com within 45 days of the issuance of this news release. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.
The information from the Feasibility Study forms the basis for the comprehensive EIA study which is required by Colombian law, and the official notification of receipt of application from the environmental authority commences the review process of the EIA application. Leading up to the filing of the EIA, ongoing communication by means of support and technical workshops with the relevant government authorities has enabled a smooth and expedited application filing.
“The filing of the EIA in conjunction with the completion of the Feasibility Study for Alacran officially commences the next chapter for Cordoba as we transition from a pure exploration company to a development enterprise, which is a landmark milestone achieved through the unequivocal dedication by the Cordoba team and unwavering support from our shareholders and stakeholders,” commented Ms. Sarah Armstrong-Montoya, President and CEO of Cordoba.