Sarah Armstrong-Montoya, President and Chief Executive Officer of Cordoba Minerals Corp. announce that the Company has filed on SEDAR+ an independent technical report entitled “NI 43-101 Technical Report, Feasibility Study, Alacran Project, in Colombia” (the “Report”) prepared in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) supporting the results of a Feasibility Study (“Feasibility Study”) for the development of the Company’s flagship Alacran Project in Colombia (the “Project” or “Alacran”). The key results of the Feasibility Study were previously reported in the Company’s news release dated December 18, 2023, and there are no material differences in the Report from those results. The effective date of the Report is December 18, 2023.
Key highlights of the Feasibility Study:
- Initial Capital Cost (“CAPEX”) is estimated to be approximately US$420.4 million for the construction of a conventional truck-shovel open pit mine;
- The Project is anticipated to hold an after-tax Net Present Value (“NPV”) of US$360 million with an Internal Rate of Return (“IRR”) of 23.8% and a payback period of 3 years;
- The Project’s mine life is projected to be 14.2 years in addition to the estimated two years of construction and pre-production mining, of which, freshly mined ore will be stockpiled alongside historical tailings;
- The life of mine (“LOM”) cash costs for copper, net of by-product, is US$1.35/lb with by-product credits at US$1.31/lb, and a total LOM cash cost at US$2.66/lb; (cash costs excludes sustaining capital);
- The average mining rate for the Project is projected to be 39.5 Mt of mined material per year of which ore material will be fed to dual processing plants consisting of a main processing facility for fresh and transition material, and a separate wash gravity plant for saprolite ore and historical tailings;
- The Company filed the Environmental Impact Assessment (“EIA”) application with the relevant Colombian Government authority on December 11, 2023 and was issued the official filing number on December 12, 2023;
- In accordance with the Strategic Framework Agreement signed with joint-development partner JCHX Mining Management Co., Ltd. (“JCHX”), the second installment of US$40 million has been paid by JCHX to the Company, subsequent to the approval of the Feasibility Study by the Cordoba Board of Directors and the filing of the EIA application.
The Report can be found on SEDAR+ under the Company’s issuer profile at www.sedarplus.com, and on the Company’s website at www.cordobaminerals.com
Technical Information & Qualified Person
The scientific or technical information in this news release has been reviewed and approved by Mark Gibson, P.Geo., a Qualified Person for the purpose of NI 43-101. Mr. Gibson is the Chief Operating Officer of Cordoba and Chief Geophysics Officer of Ivanhoe Electric Inc., Cordoba’s majority shareholder, and is not considered independent under NI 43-101.
Non-GAAP Measures
The Company has included a non-GAAP performance measure as detailed below. In the mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers and the non-GAAP measures do not have any standardized meaning. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Cash Cost
Cash costs are a non-GAAP financial measure. As the Alacran Project is not in production, this prospective non-GAAP financial measure may not be reconciled to the nearest comparable measure under IFRS, and there is no equivalent historical non-GAAP financial measure for the prospective non-GAAP financial measure discussed herein. The Company calculated total cash costs per pound by attributing operation costs for production, broken down by pound of copper produced. While there is no standardized meaning of the measure across the industry, the Company believes that this measure is useful to external users in assessing operating performance.
About Cordoba
Cordoba Minerals Corp. is a mineral exploration company focused on the exploration, development and acquisition of copper and gold projects. Cordoba is jointly developing the Alacran Project with JCHX Mining Management Co., Ltd., located in the Department of Cordoba, Colombia. Cordoba also holds a 51% interest in the Perseverance Copper Project in Arizona, USA, which it is exploring through a Joint Venture and Earn-In Agreement. For further information, please visit www.cordobaminerals.com.
ON BEHALF OF THE COMPANY
Sarah Armstrong-Montoya, President and Chief Executive Officer
Information Contact
Ran Li +1-604-689-8765
[email protected]
