Having completed the optimised feasibility and definition phase engineering study of the Australian project, the company will now proceed with its plans for project financing and operational readiness
The Hillside copper-gold project involves a pre-production capital cost of $598m. (Credit: Khusen Rustamov from Pixabay)
Rex Minerals has announced its commitment to advance its 100%-owned Hillside copper-gold project in South Australia to the next phase.
In this connection, the company will go ahead with its plans for project financing and operational readiness having completed the optimised feasibility and definition phase engineering study (OFS).
According to Rex Minerals, the Hillside copper-gold project involves an estimated pre-production capital cost of A$854m ($598m). The amount is all-inclusive of full fleet, pre-strip, and contingency.
The company aims to deliver the first concentrate from the project in Q4CY2025.
The next steps for the company will be to pursue appropriate funding through a structured process. The aim for this is to be in line with the detailed engineering, construction, and operational readiness plans, said Rex Minerals.
The company is also planning to seek potential strategic partnerships via a minority interest.
Rex Minerals CEO and MD Richard Laufmann said: “Rex remains on track to become a significant Australian copper producer. Despite the current global headwinds, the economics remain robust, and Hillside is planned to be in production at a time when the world will require a significant amount of copper to drive the global electrification initiatives.
“We have received strong interest from a range of external financiers, traditional and nontraditional lenders, equipment suppliers and the major copper smelters and metal trading companies.”
As of December 2022, the Hillside ore reserve is 989,000 tonnes of contained copper and 834,000oz of gold.
Stage one of the Hillside copper-gold project, which is for a duration of 11 years, includes 151,000 tonnes of copper-gold concentrate. It is said to lay the foundation for operations for more than 20 years and extracts nearly 50% of the current ore reserve.
A subsequent stage two is possible based on existing ore reserves and mineral resources, as per Rex Minerals.
The company revealed that mining operations at the Hillside copper-gold project call for conventional open pit extraction by employing large-scale rigid trucks that will be loaded by excavator.
Rex Minerals said that it has secured key approvals to allow the start of development and operations.