A definitive feasibility study into Universal Resources’ Roseby Copper Project in north-west Queensland has confirmed that the project is technically and financially viable.

The study indicates that continued strength in the copper price, which recently hit US$4 per pound, has improved the base case assumptions for the project, located near Mt Isa.

The company is now looking to take the project into the financing and construction stages.

The base case model, which is derived from forward curve values for exchange rate, copper price and gold price, indicates the following values over an initial mine life of 12.5 years:

Net cash flow of $715 million.

Net operating surplus of $1.037 billion.

NPV at 8.5% discount rate of $319 million.

IRR of 36%.

C1 costs of US$1.24 per pound of copper.

Maximum working capital of $200 million.

Pay back from start of production of 2.2 years.

Breakeven recovered grade of copper of 0.32%.

Universal Resources’ managing director Peter Ingram says: “The Board has approved the Roseby study and Universal is now formally committed to the development of the project.

“We now have a fully costed copper project, showing excellent potential returns. Roseby is ready to go once suitable finance and remaining approvals are arranged. We are targeting approximately 14 months from commencement of on-site construction activities to completion and first production.”

There is also considerable scope to enhance the future value of the project through a range of optimizations, including the definition of further mining reserves from the seven known satellite deposits. Throughput increases and process improvements can also add future value.

www.universalresources.com.au