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Kiruna September 20, 2021
Based on the progress from ongoing core drillings as well as the overall momentum in the copper market, Copperstone Resources AB (publ) today has revised and enlarged the total resource and production ambition for the reopening of the Viscaria copper mine in Kiruna, Sweden. The company is now, in feasibility stage, modelling for increased yearly milled run-rate production to 3 Mton compared to earlier assumptions of 2 Mton. The estimated annual net profit after ramp-up is therefore assessed to increase from 400 MSEK to approx. 850 MSEK. The total capital expenditure (“Capex”) is estimated to increase from 1,500 MSEK to some 3,000-4,000 MSEK. The re-opening of Viscaria is subject to the successful conversion of mineral resources into reserves, an environmental permit approval and funding. The ambition is to submit the application to Land and Environment Court has therefore been determined to the first quarter of 2022.
“It is very gratifying that we gradually are making progress in the restart of Viscaria mine and that the team efforts and the promising market conditions have enabled a better and more sizeable project than we previously estimated. Moreover, our growing team of experts constantly finds new solutions that gives a more optimized and sustainable production", comments CEO Anna Tyni.
The Copperstone Board´s overall contemplation of an enlarged Viscaria operation is based on solid indications of increased mineral resources in the ongoing exploration activities as well as the favourable copper market, with prospects of long-term imbalance of supply and demand. A pre-requisite for a larger mine in operation is continued exploration success, and the company’s ability to convert inferred and indicated mineral resources into higher categories and in that way secure the life-of-mine.
Revised and enlarged mining operation
Recent drillings at Viscaria have given encouraging results from the B-zone south deposit, where only limited previously code-compliant mineral resources have been declared to date. Consequently, Copperstone will also include these resources in the next mineral resource inventory update. Copperstone has revised its geological model and envision Viscaria Copper Project´s exploration target to reach 89 - 109 Mton of copper-bearing rock in the mid-term (3-5 years), corresponding to 1,000,000 – 1,200,000 tons of copper at 1.11 – 1.13 % copper (currently 727,000 ton)1. See attached geological summary.
The mining model is based on a combined open pit and underground mining scenario with a life-of-mine of minimum 10 years.2
The new scenario initially includes an increased yearly milled run-rate production and plant equipment and machinery capacity of 3 Mton, dimensioned for a future 5 Mton. The enlarged project scenario is estimated to increase the total capital requirement to 3,000-4,000 MSEK. The company also investigates the potential to include the tailings- and waste-rock, especially during ramp-up and in the event of an extension to 5 Mton. The additional CapEx to take the plant from 3 Mton to 5 Mton is not negligible yet considered as financially defendable.
The total production of copper in the new model is estimated to 30,000 ton per year.
The projected modelling cash costs is estimated to 3,900 USD/ton (including by-products) and an updated assumption for the copper price at 9,000 USD/ton.
The annual net profit, after ramp-up, over the life-of-mine is assessed to be approx. 850 MSEK.3 The company´s previous announced assessment regarding annual net profit after ramp-up amounted to approx. 400 MSEK and Capex of 1,500 MSEK, cash costs of 3,600 USD/ton and a copper price of 7,000 USD/ton.4
The submitting of the application for the environmental permit to the Land and Environment Court has now been specified to the first quarter of 2022.
For more information, please see attached geological summary on the Viscaria copper project as well as an updated corporate presentation, please refer to Copperstone´s webpage: www.copperstone.se.
This information is information that Copperstone Resources AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was delivered by the above-mentioned contact for publishing September 20, 2021 at 08.00 CET.
For further information, please contact Anna Tyni (CEO) firstname.lastname@example.org or email@example.com.
Copperstone Resources AB is a company now scaling up to become a modern and responsibly producing mining company through the reopening of the Viscaria mine in Kiruna, Sweden. The deposit’s high copper grade assessed mineral resources, geographical location and growing team of experts provides good opportunities to become a key supplier of quality and responsibly produced copper – a metal that plays a critical role in Sweden’s and Europe’s climate change towards an electrified society. In addition to the Viscaria mine, Copperstone holds a number of other exploitation concessions and exploration permits in Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbogruvan), all in Sweden. The company’s shares are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company’s Certified Adviser, firstname.lastname@example.org, +46 8 604 22 55.
1 See further attached geological summary on the Viscaria copper project and the Company’s scoping study from 2015/16.
2 See further the Company’s scoping study from 2015/16.
3 Based on consistent assumptions and specifically revised assumptions, see further the press release of 20 November 2021 regarding the assumptions and goals.
4 Based on consistent assumptions and specifically revised assumptions, see further the press release of 20 November 2021 regarding the assumptions and goals.