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Cyprium Metals Ltd (ASX:CYM) has refined the scoping study for the Nifty Surface Mine, resulting in significant improvements to the project’s economic outlook by substantially reducing waste ore compared to earlier estimates.
The updated study has achieved a 25% reduction in the 'concentrator-only' strip ratios, lowering the waste-to-ore ratio to 7.3:1 from the previous figure of 9.7:1. Additionally, enhancements have been made to the pit shell designs of the mine.
Cyprium Metals' executive chair, Matt Fifield, noted that the revised mine optimization represents a major advancement for the company. This development is attributed to a comprehensive mine development sequence executed from start to finish. The updated approach has yielded several positive outcomes, including improved economic metrics, a smaller environmental footprint, and the capacity to sustain revenue generation from the cathode plant throughout the mine’s operational life.
Enhanced Economics and Extended Mine Life
The company's technical partner, MEC Mining, conducted a thorough review of the recent scoping study and performed a geotechnical analysis using historical drilling and testing data. This analysis identified opportunities for significant improvements in the pit shell design and the preservation of the existing solvent extraction-electrowinning (SX-EW) infrastructure throughout the anticipated duration of heap leach operations.
Colin Mackey, Cyprium’s Chief Operating Officer, highlighted that the new geotechnical data supports cost reductions by enabling the use of steeper wall angles that align with the natural bedding planes of the shales overlaying the Nifty sulphide orebody. This adjustment reduces the total material movement required, accelerates the timeline to first ore, and enhances overall operational flexibility by extending the life of the SX-EW infrastructure.
With both concentrator and cathode ore feeds considered, the overall pit strip ratio for the Nifty project has been reduced to 6.3:1, which extends the mine's operational life to over 20 years.
Sustaining Cathode Plant Operations
Matt Fifield emphasized the strategic advantage of the updated development sequencing, which integrates the surface mine with the cathode plant more effectively. The refurbishment of the cathode plant now supports an extended operational timeline, addressing previous uncertainties about the plant's lifespan linked to the progress of the surface mine.
The forthcoming pre-feasibility study (PFS) will evaluate the potential for additional cathode production derived from oxide ore sourced from the new surface mine, alongside planned retreatment of existing heap leach materials.
Fifield also pointed out that the Nifty sulphide resource remains a key driver of value for Cyprium. The enhanced lower strip ratio and optimized use of the cathode plant are anticipated to make the previously reported positive economics of the May 2024 Scoping Study even more compelling.
The company is enthusiastic about sharing these favorable updates and is committed to continuing diligent work on restart planning to further enhance the project’s economic potential and expedite its market readiness. Further details on the execution strategy are expected to be provided soon.
