Vancouver based Quadra Mining released a scoping study on its Sierra Gorda project in Chile's region II outlining a 25 year life in which it would produce on average 306 Mlb per year copper, 16 Mlb per year molybdenum and 36,000 oz per year gold for a startup CAPEX of USD 1.66 billion and copper cash cost of USD 0.79 per lb.

The company said that the study contemplated an open pit operation with a 111,000 tonnes per day throughput.

Mr Paul Blythe CEO of Quadra said that "We would expect to be in production in 2013-14. We aim to have permitting at the end of this year or in the Q1 of 2010."

Based on prices of USD 2.00 per lb for copper, USD 12.0 per lb molybdenum and USD 800 per oz gold, the project has a net present value of USD 622 million using a 10% discount rate and an internal rate of return of 16%.

The study used average grades of 0.42% for copper, 0.03% for molybdenum and 0.07 gram per tonne for gold and recoveries of 86% for copper, 59% for molybdenum and 42% for gold.

Quadra also updated Sierra Gorda's resources to now include 1.35 Bt in measured and indicated sulfides grading 0.42% copper, 0.03% molybdenum and 0.07 gram per tonne gold. Inferred sulfides amount to 456 Mt grading 0.38% copper, 0.01% molybdenum and 0.04 gram per tonne gold, both using a 0.30% copper equivalent cutoff grade.

Oxide measured and indicated resources stand at 251 Mt grading 0.33% copper. Inferred oxides amount to 26.8 Mt at 0.28%, both using a 0.20% cutoff.

Mr Blythe said that the company is looking for a partner to assist the company financially in advancing the project.

Quadra Mining recently acquired Centenario Copper, which runs the Franke mine in region II, near Sierra Gorda and is slated to produce some 30,000 tonnes per year in copper cathode. The company has also considered producing the less processed pregnant leach solution in order to save on startup costs as that would require less equipment.

(Sourced from bnamericas.com)