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|
|Project Life (a)||years||13|
|Production ZnEq (b)||lbs||1,380,310|
|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|
|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.