Capricorn Copper claws its way back from March washout

Capricorn Copper mined 100,000 tonnes of ore last quarter as Phase 1 of its recovery plan cranked into gear after the extreme weather event in March. Its quarterly copper production total of 1.1kt compares to 7.7kt for the September quarter last year. In addition to mining from the Mammoth and Greenstone areas, the operation has been carrying out work in readiness for Phase 2 - restart of mining from the Esperanza South sub-level cave. Meanwhile Capricorn Copper owner 29Metals was knocked back in a request to increase the allowable level of water within the old Esperanza pit to help manage water on the site. The company plans to appeal the Department of Environment and Science ruling on the issue. Recovery plan on track "The restart of mining in Mammoth and Greenstone, and campaign mineral processing operations, was in line with our recovery plan and a testament to the excellent work by the team on-site," 29Metals managing director and chief executive officer Peter Albert said. 29Metals managing director and CEO Peter Albert. "The successful completion of the $151 million entitlement offer and receipt of an initial $24 million insurance progress payment during the quarter has strengthened 29Metals’ financial position and ensures that the ongoing Capricorn Copper recovery plan is funded.” Operations at Capricorn Copper, 120km north of Mount Isa, were suspended in March due to the impact of heavy rainfall. Capricorn Copper restarted mining operations in the Mammoth and Greenstone areas of the operation In August in a phased recovery plan. However mining is not expected to resume at the Esperanza South sub-level cave mine until the first half of next year. Mineral processing operations have resumed at Capricorn Copper and are being run on a campaign basis to align with achievable mining rates from Greenstone and Mammoth In it's quarterly update, 29Metals reported teething issues in restarting the mine and processing plant. These necessitated additional filtration and further fine-tuning of lime treatment during campaign breaks. Mechanical evaporators in action at Capricorn Copper. The rate of water inventory reduction on the site accelerated during the quarter, 29Metals said. Related: 29Metals reveals its losses after Capricorn Copper deluge Commissioning additional mechanical evaporation capacity assisted this along with the restart of operations which, combined with the interim water treatment solution and recycling, enabled the entrainment of water within tailings and paste fill. The company said design and procurement of equipment to implement bulk treatment of water held on site for potential release (subject to regulatory approval) was well advanced. Production costs (C1: US$6.01/lb and AISC: US$7.53/lb) are expected to reduce as campaign operations and water treatment practices are embedded. However, 29Metals said a material downward step change in unit costs depended on restarting mining from Esperanza South, leading to increased milling rates.

Capricorn Copper claws its way back from March washout

Industry Queensland

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