Commodities, Copper, Exploration/Development, News

Cloncurry project nears first copper

Cloncurry copper

True North Copper (TNC) is a step closer to becoming a copper producer after a restart study demonstrated the viability of the company’s Cloncurry project in Queensland.

True North aims to mine 4.8 million tonnes of ore over an initial 4.6-year mine life at Cloncurry, delivering 35,000 tonnes (t) of copper and 29,000 ounces (oz) of gold.

It is anticipated the mine – with a pre-tax net present value of $88 million – would generate $367 million of revenue with free cash flow of $111 million. This is based on a $US8500/t copper price and a $US1850/oz gold price.

True North managing director Marty Costello said, with a payback period of just six months post-mining restart, the company’s life-of-mine plan demonstrated sound economic foundations and a low-risk cost profile.

This is further bolstered by the offtake partnerships in place.

“Our strategic partnerships, including a binding offtake and toll-milling agreements with Glencore International AG, supported by debt funding secured with Nebari, underscore our operational readiness and position TNC to capitalise on what we believe is an extremely favourable copper market,” Costello said.

Costello said True North is working to extend the Cloncurry project’s mine life, with exploration and expansion opportunities centred on the Great Australia mine and Wallace North deposit.

Leveraging existing infrastructure, the restart study demonstrates a low upfront capital expenditure of $1.5 million for the Cloncurry project, while peak operating expenditure is estimated at $2.2 million.

With the Nebari loan facility in place, and all necessary permits obtained, True North aims to commence mining in the first half of 2024.

The Cloncurry project is represented by iron oxide copper-gold (IOCG) and iron sulphide copper-gold (ISCG) deposits, while True North also owns its Mt Oxide IOCG copper-cobalt-silver deposit further north.

Subject to underground mining optimisation studies, Mt Oxide has the potential to be a globally significant mining operation.

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