-- CuFe (ASX:CUF) said an expanded scoping study on its 55%-owned Orlando project in the Northern Territory shows a net present value of around AU$705 million on a 100%-ownership basis, internal rate of return of 111%, and payback period of 10 months, according to a Wednesday Australian bourse filing.
This improves to a net present value of around AU$908 million on a 100% ownership basis if spot prices as of April 8 are used, the company said.
The Orlando project is part of the wider Orlando/Gecko project in which CuFe Tennant Creek holds a 55% stake and Gecko Mining, a subsidiary of Gold Valley Group, holds a 45% stake.
The expanded study is based on a standalone development of the Orlando deposit, including the construction of a new processing plant, with plant purchase and installation costs of AU$86 million comprising the majority of the estimated AU$141 million total pre-production capital expenditure.
The company is considering a cutback to the existing Orlando open pit, re-establishing underground operations and the installation of the plant capable of producing copper, gold, bismuth, and silver, per the filing.
CuFe's shares rose past 10% in recent trading on Wednesday.