PEA confirms potential for Opemiska project in Quebec

XXIX Metal (TSXV: XXIX) has released a preliminary economic assessment (PEA) for its Opemiska project in Quebec, outlining robust economics for what it calls one of Canada’s highest-grade open-pitable copper deposits.

The Opemiska project spans 213 sq. km in the Chapais-Chibougamau region and benefits from existing infrastructure and nearby access to the Horne smelter. It comprises four past-producing mines, with Springer and Perry underpinning the PEA. Cooke, a third past-producing mine located 3 km east of the proposed pit, is undergoing evaluation for its gold resource potential.

The PEA estimates a 17-year life of mine, during which it would produce total payable copper of 715 million lb., alongside 409,000 oz. of gold and 2.08 million oz. of silver. The study indicates strong after-tax base case economics, with a C$505 million net present value at an 8% discount rate and a 27.2% internal rate of return. Using current spot pricing, these figures increase to C$897 million and 39.3% respectively.

The project shows a rapid payback period of 2.3 years for its initial capital of C$617 million, attributed to upfront high-grading. Opemiska also positions itself as a low-cost producer, the study shows, with a $1.03/lb. cash cost net of by-product credits over the first six years, rising to $1.40/lb. over the mine’s life.

The PEA incorporates 44.3 million tonnes of inferred mineral resources at grades of 0.32% copper, 0.18 g/t gold and 0.77 g/t silver. The company notes additional resource upside, including the Cooke gold zone, where active drilling is currently underway.