Ivanhoe Electric reports results from IA for its Santa Cruz Copper Project

Ivanhoe Electric provided the results from the Initial Assessment, or IA, for its Santa Cruz Copper Project, located west of Casa Grande, Arizona. The IA is a preliminary technical and economic study for the Santa Cruz Copper Project and associated high-grade mineral resources included in the Santa Cruz and East Ridge deposits. The study analyzes the potential for a high-grade underground copper mining operation supported by modern technologies to reduce environmental impact and powered predominantly by renewable energy. Highlights of the Initial Assessment include: Santa Cruz IA outlines a potential 5.9M tonnes per year underground mining operation, supported by 105.2M tonnes of modeled mill feed with an average grade of 1.58% copper from the Santa Cruz and East Ridge Deposits, resulting in an estimated 20-year mine life. The IA focuses exclusively on the high-grade exotic, oxide and enriched domains of the Santa Cruz and East Ridge Deposits. The oxide and enriched domains of the Texaco Deposit are not included in the current study. Future studies could evaluate the potential addition of the large primary sulfide domains at Santa Cruz and at the Texaco Deposit subject to market conditions. Copper recoveries of 95.4% are expected to be achieved through a combination of solvent extraction and electrowinning and conventional froth flotation. The IA includes LOM production for the Project of 1.0M tonnes of copper in the form of 99.99% pure copper cathode and 600,000 tonnes of copper contained in a 48% copper concentrate with very low deleterious elements, such as arsenic or lead. LOM average C1 cash costs are expected to be $1.36 per payable pound of copper, with C3 total costs expected to average $2.84 per payable pound of copper. The IA contemplates initial project capital expenditures of $1.15B, and LOM sustaining capital expenditures totaling $980M. A three-year construction period is envisioned to develop the underground workings and build the surface processing facilities. The IA estimates that the Project has a pre-tax net present value of $1.6B at an 8% discount rate and a pre-tax internal rate of return of 25.1%, using a flat LOM copper price assumption of $3.80 per pound. After-tax NPV is estimated at $1.3B with an after-tax IRR of 23.0%, using the same discount rate and copper price assumptions.