Altona Mining says it is on the brink of becoming a mid-tier copper producer, after releasing a study which says its Little Eva copper-gold project near Mount Isa in Queensland will cost $320 million to develop.
Altona said a definitive feasibility study for Little Eva flagged an 11-year open pit mine life, with reserves of 375,000 tonnes of copper and 205,000 ounces of gold, to produce $2.97 billion in revenue.
Little Eva is part of Altona's larger Roseby project, located around 90 kilometres north of Mount Isa.
The study flagged an annual production of 38,800 tonnes of copper and 17,200 ounces of gold in concentrates.
The Perth-based miner said Little Eva's processing plant and infrastructure would cost $181 million to develop, with a total project cost of $320 million.
The feasibility study was managed by GR Engineering Services, with Optiro and Knight Piesold acting as principal sub-consultants.
Managing director Alistair Cowden said the company was particularly pleased the project could be delivered for $320 million.
“We are excited that Altona is now on the brink of becoming a mid-tier copper producer as Little Eva would combine with our Finnish operations to lift Altona's annual production to approximately 47,000 tonnes of copper and 25,000 ounces of gold,” Mr Cowden said in a statement.
Altona said financing and partnering discussions would begin once the status of an option held by mining giant Xstrata to purchase 51 per cent of the Roseby project is clarified. The option expires June 30.
At 2:10PM WST, Altona's stocks were up 3 per cent at 27.5 cents.
