Highlights

• Cyprium Metals is consistently stepping closer to the process of refurbishment of its Nifty Copper Project.
• Most activities pertaining to operational readiness and environmental clean-up are about to complete.
• Also, the company is advancing discussions with multiple parties to raise funds for the restart of the Nifty Copper Project.

ASX copper player, Cyprium Metals Limited (ASX:CYM) continues to further the refurbishment of its Nifty Copper Project along with making arrangement for a finance process for restarting the operation. The company has carried forward the predevelopment work to ensure that the Nifty site was ready at the go-line upon completion of financing, before refurbishment and construction activities are initiated.

As per the company Nifty employees have made excellent progress thus far, especially when comes to being operational ready for the project kickoff. The site has remained on care and maintenance ever since its acquisition. This has been achieved by Nifty for the last 14 months, that too without any lost time injury

A quick look at the progress made so far

·        Collection ponds and heaps set for success

The process of trenching and drilling was conducted around the heap leach pads to collect samples for assays and testing. Also, drainage was restored, as leach solutions were required to be channelised to the collection ponds. This will also prevent overflowing in case of rain. Access too has been reestablished to the top of the heap for transporting and placing residue from the collection ponds. As needed, steps were taken to direct the solution from the heap to drains at the heap front.

The collection ponds have filled up with residue, in turn reducing storage freeboard. Access has been established to dry out the ponds and excavate material back to the heap leach when required. Upon emptying, the ponds can be surveyed, repaired, and relined.

Source: Company announcement

·        Capacity enhancement

Alongside, the company has also upgraded the capacity of the ponds to retain the solution within the ponds during rainfall, which was restricted in the past because of being filled up with solids. The solution has a grade of +10 gpl copper versus a usual solvent extraction (SX) feed grade of 3 to 4 gpl. This substantial solution inventory of more than 500 tonnes of copper is available for project commissioning.

·        Cleanup activity

The SX has been cleaned up to the extent of being ready for refurbishment tasks. The electrowinning (EW) cleanup has progressed with stripping of anodes and cathodes from cells. Several cathodes had copper attached which has been stripped and placed on pallets for sale. Currently, the pallets have about 25 tonnes of copper cathode. The tanks contain dropped anode and cathode along with dried copper sulphate at the base.

The cathodes and anodes have been palleted up for sale because of their recycling value for stainless steel, lead and copper. The dried solids have been collected to return to the circuit until refurbishment commissioning. Upon removal of the solids, the pipework will be taken out for tank cleaning. Following this, the tanks are filled and hydrotested to check leakage. Then, the tanks are emptied for reline and leak repair once refurbishment starts.

Source: Company announcement

·        Fixed infrastructure development

A review of fixed infrastructure was done to assess it for refurbishment when the construction starts. Refurbishment of camp accommodation, and significant data communications infrastructure upgrades are being made to bring them up to standard ready for commencement of construction activities.

Talks on for project financing

Cyprium has been making persistent efforts to arrange finances for its Nifty Copper Project. It is aiming a value between AU$240 million to AU$260 million as a debt funding package. The proceeds once obtained will be directed to finance the restart process at Nifty and other project costs. This is likely to comprise subordinated debt, senior secured financing, and offtake financing.

Positive discussions and negotiation of terms are underway with multiple parties.

Management Commentary

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CYM stock last traded at AU$0.069 on 29 September 2022.