Shares in ECR Minerals soared in afternoon trade on news that its associate THEMAC Resources Group has published a positive prefeasibility study for the Copper Flat project.

The copper, molybdenum, gold and silver project in New Mexico was sold by ECR then known as Mercator Gold through a deal agreed back in March 2010 in return for 19% stake in THEMAC.

ECR relayed a statement from its associate which outlined a viable project with a net present value of USD 388.5 million and an internal rate of return of 36.2%. By 3.22 pm in London, ECR was trading up 44% at 0.49 pence in reaction.

The prefeasibility study estimates initial capital costs at USD 297.7 million and operating costs of USD 0.79 per pound of copper for the first two years. The payable production for the first 2 years is forecast to be 130.57 million pounds of copper, 2.63 million pounds of molybdenum 24,000 ounces of gold and 1.086 million ounces of silver.

Copper Flat has proven and probable reserves of 98.118 million tonnes containing 608.5 million pounds of copper, 18.1 million pounds of molybdenum, 295,000 ounces of gold and 6.48 million ounces of silver.

Mr Patrick Harford MD of ECR said that “With the release of the PFS the team at THEMAC have delivered a strong result that brings the strengths of the Copper Flat project to the fore. For example, the existing infrastructure is estimated to represent a capital cost saving of USD 54 million, and the reserves of the deposit are accessible from surface thanks to the pre-stripped open pit. Overall Copper Flat’s history as an operating mine translates to lower execution risk for the planned return of the project to production which THEMAC has indicated is targeted to occur in late 2014 following the conclusion of the permitting, definitive feasibility study and detailed engineering processes by Q3 2013, allowing construction to commence in the final quarter of 2013.”

Source - Proactive Investors

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