Omico Mining Corp says it will complete the bankable feasibility study for the Omitiomire Copper Project in the second half of 2024.
The bankable feasibility study was supposed to have been completed in the first quarter of 2024.
The Omitiomire Copper Project is in the Hockfeld area, Otjozodjupa region, northeast of Windhoek.
Omico Copper is a joint venture between and International Base Metals Limited.
UK-based private equity fund Greenstone Resources is the manager of Omico, which holds 95% of the Craton Project, with the Craton Foundation Trust holding the remaining 5%.
Craton Mining and Exploration, a subsidiary of the Australian company International Base Metals Limited, holds the Omitiomire mining licence 197.
The two parties agreed in 2019 that Greenstone would earn 51% of Craton in return for completing a bankable feasibility study (BFS) with a minimum expenditure of US$5 million.
After the bankable feasibility study, and assuming it meets the required future investment hurdles, IBML would have the option to either sell its remaining equity in Craton to Greenstone for US$7.5 million plus a 1.5% NSR royalty or invest in the future project to the extent of its equity holding.
Omico says the bankable feasibility study could not be completed as planned after Phase 3 metallurgical test work, indicating significantly lower acid consumption, faster leach cycle time, and higher recovery than expected.
As a result of these findings, Omico commissioned a final Phase 4 metallurgical test work programme starting in December 2023, which aimed at bringing this new approach to a bankable standard.
Omico says the expected bankable feasibility study outcomes, with a revised processing approach, include post-tax NPV8 of US$175 million, 18% IRR, with a capital intensity of US$14,100/t copper including mining fleet, C1 costs of US$4,700/t Cu and AISC of US$5,520/t Cu.
The assumption is that Omitiomire will produce 25-30ktpa Cu cathode within 13 or 14 years, with preproduction capital at US $360 million.
The plant capacity will be 6.7 Mtpa, while metallurgical recoveries were set at 80%, with acid consumption of 15 kg/tonne and leach cycle time of 200 days.
