Alta Copper Corp. Reveals Strong Economic Potential in Latest 2024 PEA of the Cañariaco Project

Alta Copper Corp., a prominent name in the mining industry, recently disclosed promising economic results from its 2024 Preliminary Economic Assessment (PEA) for the Cañariaco Project, located 700 km northwest of Lima. The project is expected to convey a base-case after-tax Net Present Value (NPV8%) of US$2.3 billion and an Internal Rate of Return (IRR) of 24.1%. Using a 3-year trailing average for metal prices, the assessment predicts substantial financial growth and long-term productivity.

The PEA showcases significant outputs with life-of-mine production totals reaching 8,026 million pounds of copper, alongside considerable outputs of gold and silver. Additionally, the annual average copper production during the first ten years is estimated at about 347 million pounds. The initial calculation also introduces an annual free cash flow of US$538 million right from the first year of the operation. These figures emphasize the project's ability to generate sustainable fiscal returns swiftly post start-up.

In operational terms, the Cañariaco project will benefit from cost-effective measures such as an estimated C-1 cost of $1.86 per pound of copper, countering by-products. The All In Costs (AISC) similarly stands reasonably at $1.96 per pound, making the project financially viable under the current market conditions and predictions. Pre-production capital necessity is approximated to be $2.2 billion, inclusive of a 21% contingency allocation on initial project capital expenditures, conveying a level-headed estimate in funding the necessary infrastructure and equipment.

Despite the robust projections, it’s paramount that stakeholders observe the advisement on the preliminary nature of the 2024 PEA. The outlined figures and metrics rely heavily on continuous supportive market conditions and competent operational execution. Hence, the upcoming technical report scheduled to be published on June 7, 2024, under the Company’s SEDAR+ profile should provide further clarity and detailed analysis.