Crazy Horse Resources has announced an 80% increase in the magnetite recovery at its Taysan copper-gold project in southern Luzon. Test work for the new pre-feasibility study at the scaled down project shows an improvement in magnetite recovery from 51% to 91%, or 273,000 tonnes to 483,000 tonnes annually over a 15 year mine life. 1

The company has recently revised its assessment for a smaller, more financially robust mine annually processing 15 million tonnes – half the size of the original 25 year mine.

The company’s mining consultant says the smaller mine and higher-grade pit will increase the average copper grade of processed material and reduce the waste required to be mined, which in turn will improve the project’s cashflows and profitability.

Crazy Horse announced these changes will result in a significant increase in profitability, with the internal rate of return (IRR) increasing to 29.3% from 21.9% in the last Preliminary Economic Assessment (PEA). However, the significant increase in magnetite recovery has pushed up the IRR again to 33.6%.

The company says the 15 million tonne annual throughput would be the first stage of the mine, with an increase in the second stage to 30 million tonnes dependent on future copper prices. Any future expansion could be funded by project cashflow.

Crazy Horse’s chairman Mitch Alland says, “This new plan to develop the Taysan deposit through a staged operation starting with a 15 million tonnes plant maximizes profitability, as evidenced by the 34% increase in the expected IRR and also makes the project financeable.

“Taysan is now an exceptional and robust copper project and the pre-feasibility study is now continuing on a much stronger and attractive basis.”

Taysan is a drill defined copper-gold porphyry deposit covering a total area of 11,254 hectares about 20km east of the provincial capital and commercial port city Batangas. The project’s infrastructure requirements are largely based on the work done for a 30 million tonne assessment, however the port, power distribution, telecommunications and access roads will remain as planned. The water dam, camp, tailings storage and fuel farm have been scaled down to suit the lower mine throughput.

A new resource estimate is now being prepared, including the results from 49 drill holes announced in December 2011 with highlights of 326.4 metres @ 0.41% copper, 0.25 grams/tonne gold and 1.61 grams/tonne silver including 98.4 metres @ 0.83% copper, 0.63 grams/tonne gold and 3.38 grams/tonne silver. The pre-feasibility study is scheduled for completion in March.

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