Santander – Consolidated Project
- The project consists of expanding the current operation of the Magistral Mine and integrating it into the area called the Santander Pipe.
- The project considers using our 2,500 tpd Mill and Concentrator facility that has produced over 7.0 Mt @ 3 – 5% Zn, during 2013 – 2022, and expanding it to 3,125 tpd by 2025 to maximize production.
- The Santander Pipe used to be the old Santander Mine owned and operated by Compañía Minerales Santander (CMS) from 1957 to 1992, and according to historical records, produced over 8 million tonnes (Mt) @ 7% Zn with significant Pb-Ag content and minor copper credits.
- The Consolidated project has the potential to generate a 10+ Year mine life, 240M+ USD pre-tax NPV (6%), 56.1% IRR. 420M+ USD 10-year EBITDA, 20M+ FC average per year for a 95,000 dmt Zn Concentrate per year average once at full production.
- The Consolidated plan considers production from 4 mineral sources; the Magistral area, and the Pipe area which is divided in 3 sources: The main Santander Pipe, the Upper-Zone potential, and the Pipe North-extension.
- For validation of geologic modeling assumptions, mining method and production profile, metallurgical and concentrate assumptions, and to show that the project can stand on its own, CDPR commissioned DRA-Global to do a PEA study on the Santander Pipe.
| POTENTIAL CONSOLIDATED MODEL | ||
| 000’s | Total | |
| Project Life (a) | years | 13 |
| Production ZnEq (b) | lbs | 1,380,310 |
| Production Zn | lbs | 1,265,888 |
| Production Pb | lbs | 34,083 |
| Production Cu | lbs | 31,528 |
| Production Ag | oz | 1,012 |
| Net Revenue | $ | 1,052,955 |
| OPEX | $ | (513,278) |
| LOM CAPEX | $ | (122,546) |
| Max Drawdown 2023-2024 | $ | (25,000) |
| Operating Cash Flow | $ | 340,076 |
| Free Cash Flow | $ | 217,554 |
| Net Cash Flow | $ | 213,701 |
| NPV @6% Pre-tax | $ | 240,863 |
| NPV @6% After-tax | $ | 134,226 |
| IRR % | % | 56.1% |
| $/tn Milled | $ | 41.40 |
| C1 Cash Cost per pound* | $/lb | 0.89 |
| ALL-in Sustaining Cost per pound* | $/lb | 1.00 |
- Schedule based on mineable resources material plus potential sources; thus not 43101 compliant and should only be used to gauge project potential. Minable Resources that are not yet Reserves don't have demonstrated economic viability.
- Metal prices used in the NSR calculations were US$2,800/tonne for Zn, US$1,896/tonne for Pb, and US$21/Oz for Ag.