Mining

Cyprium Metals to update Nifty resource next quarter as progress made towards commissioning

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By Lorna Nicholas - 
Cyprium Metals ASX CYM Nifty copper mineral resource estimate recommissioning

Cyprium Metals expects to produce first copper cathode from Nifty in the second half of 2023.

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Cyprium Metals (ASX: CYM) anticipates another boost to its Nifty copper resource next quarter as it progresses the project to commissioning in the first half of 2023.

The company unveiled a “significant increase” to the Nifty resource estimate earlier this month, which now totals 95.1 million tonnes at 1% copper for 940,200t of contained copper.

This was a 28.4% or 208,000t rise in contained copper inventory.

Another update is anticipated next quarter and will include drilling from the Nifty East target.

Drilling will continue at Nifty with mineralisation remaining open in a number of directions.

Meanwhile, oxide resources were 16.1Mt at 0.9% copper for 144,300t. Cyprium noted this ore provided near surface copper inventory for phase one of the operation.

The company has used the mineral resource upgrade to refine the phase one oxide pit design and scheduling as it targets at least a 20-year production life for the project.

Metallurgical test work is ongoing with leaching of the full suite of copper minerals achieved. Next testing will be on core samples taken from the open pit mineral resource.

Preliminary site activity

In readiness for construction, the company is carrying out a “significant clean-up” of the historical mine site and associated infrastructure, which has included rectifying several outstanding safety and environment legacy issues.

Work has included organising inventory, completing the concrete batching plant, and making preparations for refurbishing the solvent extraction and electrowinning facility.

Renovations to the accommodation have continued with one area completed, and work underway on the dry mess, dining area and laundry facilities.

Regulatory approvals

In parallel with early site activities, Cyprium has advanced the regulatory approval process.

Mining proposals, closure plans, and water licence applications have all been lodged with Western Australian Government.

Financing discussions

To secure enough capital to fund the Nifty restart, Cyprium has made headway with financing discussions.

The company requires between $240 million and $260 million in debt funding to restart mining and processing.

A restart study has estimated operating cash flows of $823 million and free cash flows of $544 million.

Potential financiers Cyprium is targeting include commercial lenders, metal trading companies and mining credit funds.

Potential parties are working through due diligence and documentation. Cyprium says it is also contemplating funding the restart through a fixed income debt instrument.

“We are currently focused on finalising the project debt financing for a fully-funded project and then to execute our construction plans so that we can produce copper metal plate on site in the second half of 2023,” Cyprium managing director Barry Cahill said.

“While working through the finance process, Cyprium has not been idle, continuing to set Nifty up for the construction works post-finance and pushing forward with the Maroochydore and Murchison projects as assay results are received from 2021 field season,” he added.