A $72 million price tag has been placed on the development of Perth-based Tiger Resources Ltd's African copper project with payback for operation pegged at one-and-a-half years.
A definitive feasibility result into the Kipoi copper project in the Democratic Republic of Congo estimates that on a base case scenario, using a copper price of $US2.50 per pound, capital expenditure is $US59 million ($A72 million).
Cash cost per pound is estimated at $US1.20 with project cash flow at $US138 million.
Net present value is pegged at $US58 million while an internal rate of return, after tax, and royalties, is at 51 per cent.
The latest study follows an option study conducted in June last year which investigated the possibility of developing the mine in two stages.
Tiger said today the definitive feasibility focused on the development of stage one of the operation, which has a mine life of 38 months with an ore feed of 900,000 tonnes per annum.
"We are extremely pleased with the outcome of the DFS particularly given the challenging development environment within the resources industry, not just in the DRC but globally," managing director David Young said.
"The exceptional high grade resource at Kipoi Central should ensure the Company can develop a robust project, with an internal rate of return of more than 50%, capable of generating positive cash flow under varying economic scenarios and will provide a strong platform for the growth of Tiger into a 100,000tpa Cu producer."