Coda Minerals boosts key metrics with revised scoping study at Elizabeth Creek

A revised scoping study on sedimentary copper-cobalt-silver mineralisation by Coda Minerals (ASX: COD) has heightened expectations for a number of key metrics at its Elizabeth Creek project in South Australia.

The updated study covered the MG14, Windabout and Cattle Grid South open-pit prospects, as well as the flagship Emmie Bluff underground target.

It builds on the original scoping study released in March 2023, incorporating improvements to underground mining methods and metallurgical processes for Emmie Bluff initiated earlier this year.

This included integrated oxide collectors and a second mill-float stage to materially boost copper and silver recoveries.

Forecast upgrades

The forecast life-of-mine pre-tax revenue for the project has been upgraded to $7.57 billion.

Net present value has increased to $1.18b pre-tax and $802m post-tax.

Other results included an 8% increase in upfront capital expenditure (pre-production) to $331m and an internal rate of return of 35%.

Market dynamics

Coda chief executive officer Chris Stevens said Elizabeth Creek could potentially come into production against the backdrop of “extremely favourable market dynamics” for the copper industry.

“Since our first estimate of the economics at Elizabeth Creek, we have made enormous progress with our technical work,” he said.

“But the world has also changed and we have taken this opportunity to normalise our macro-economic assumptions with market forecasts as well as studies released by our peers during the past year.”

“We have increased our copper price assumptions in line with forecasts, although we maintain these at the conservative end of many forecasts.”

“[Additionally], we have reduced cobalt price assumptions, especially during the first five years of the project’s life, to reflect ongoing weakness in the spot market and to align with the latest forecasts from industry specialists.”

Increased tonnage

Mr Stevens said there was much work ahead for the Coda team.

“With metallurgical test work concluded for now, the next big lever we can pull at Elizabeth Creek is to increase tonnes,” he said.

“Our drill rigs will be turning in early 2025, with targets including extensions to the high-grade underground mineralisation at Emmie Bluff and potential new open-pit deposits at Oakden.”

Active mining region

Elizabeth Creek covers 774 square kilometres of the Olympic Dam copper province, one of Australia’s most active mining regions and its most productive copper belt.

The company expects its two-stage development of the shallow sedimentary copper-cobalt-silver mineralisation to provide the foundation for a sustainable, globally competitive, long-term mining and processing operation.

Stage 1 will comprise 12 months of copper-cobalt concentrate production to drive early cash flow.

Stage 2 will see the construction of a hydrometallurgical plant using the proven Albion process to produce high-value saleable end-products of copper cathode, battery-grade cobalt sulphate, zinc carbonate and silver doré over 13 years.