Potential low-cost producer.
CuMoCo has identified significant quantities of molybdenum, copper and silver at the CuMo Project. The Company anticipates that project cash and total costs could be significantly reduced from steady by-product credits from these well-priced and in-demand metals, potentially making the CuMo Project profitable in most metal-market price conditions. Production costs are estimated to be less than $4/lb molybdenum or $0.51/lb of copper equivalent¹. Recent studies of the use of modern Ore-Sorting technology indicate that these can be reduced to similar costs of by-product producers (sub $2/lb molybdenum).
As a potential low-cost, primary molybdenum producer, the CuMo Project is expected to have significant advantages over high-cost underground or remote producers.
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To fully appreciate the potential profitability of the CuMo Project, we must challenge our ideas of molybdenum mining. Instead of developing small-sized, high-grade projects, we need to adopt the practices of the larger copper and gold porphyry deposit miners. Despite changing ore grade values within projects, these mines provide huge economies of scale, higher production rates and return significant profits to investors. Examples of this low-cost, high-profitability model include: Bingham, Olympic Dam, Highland Valley, and Morenci. Highland Valley was placed into production to mine material worth $8 per ton for a cost of $4. Using large-scale mining infrastructure, the CuMo Project is targeting mining material with a recovered value per ton in excess of $12.50 (the cut-off in the resource tables)¹ for $3 or less per ton (Ausenco 2009 mining costs).¹ Utilizing Ore-Sorting technology has the potential to substantially reduce these costs.
2 Company Financial Statements and Costing Reports, CPM group and mining cost data. CuMo Project (Typical Year) and CuMo Project (150K per day) are based upon the Preliminary Economic Analysis section of Giroux et Al’s report 2015, net of credits for copper and silver. ¹
DISCLAIMER: The Preliminary Assessment for which the above numbers are reproduced is preliminary in nature and includes the use of Inferred Resources which do not have demonstrated economic viability and are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Preliminary Assessment will be realized.
NOTES: Molybdenum Oxide Price is used which is less than current spot quoted prices which quote molybdenum as price per lb molybdenum metal contained as molybdenum oxide. So a price of $15 per lb molybdenum metal is equivalent to $10 per lb molybdenum oxide.