19th Mar 2014 09:08
LONDON (Alliance News) - Shares in Metminco Ltd rose 11% Wednesday morning after it announced a positive outcome for metallurgical test work and the financial modelling at its Mollacas Project in the IV Region of Chile.
Following these results Metminco now will proceed with a feasibility study and an environmental impact study, which it expects to be completed by late 2014.
The test-work showed 85% soluble copper recovery, and acid consumption in the agglomeration stage significantly reduced from 30 kilogrammes per tonne to 10 kilograms per ton of ore leached.
The financial modelling shows a pre-production capital expense of USD47.1 million at cash costs of USD1.23 per pound, leading to a net present value after tax of USD74.9 million.
"The positive outcome of the metallurgical test work and revised financial modelling are significant developments for the company," said Managing Director William Howe in a statement. "The company is now committed to progressing Mollacas towards production and generating a future cash flow stream."
Shares in Metminco were trading up 11% at 1.74 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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