RTNTF - Co. Starts Looking at Ways To Maximize Value of Copper Asset | Benzinga
Source: Streetwise Reports 04/08/2024
The prefeasibility-stage company also intends to do a private placement and, with the proceeds, continue advancing this project to a definitive feasibility study. Meanwhile, it continues discussions with potential strategic partners.
Freeport Resources Inc. (OTC: FEERF) launched an internal project optimization review of its 100%-owned Yandera copper-gold-molybdenum project in Papua New Guinea's prolific PNG Orogenic belt ahead of a definitive feasibility study, the company announced in a news release. Also, it plans to carry out a private placement for up to CA$5 million (CA$5M) in gross proceeds.
The aim of the review is to determine how best to improve the economics and maximize the value of Yandera, as explained in the release. According to Freeport Resources, Yandera is now "significantly undervalued based on historical expenditures, current copper prices, and the potential for resource expansion." According to the 2017 pre-feasibility study completed by Worley Parsons, the Yandera Copper Project is a large, high-grade asset with a resource estimate of 727 million tonnes of measured and indicated resources, that average 0.39% copper equivalent.
Already Yandera is garnering interest from prospective strategic partners, but optimization of the project would increase its attractiveness, Gord Friesen, president and chief executive officer, noted in the release.
"Further improvements in the project's economics would be a win-win for all parties, including shareholders" added Friesen.
One potential way to lower Yandera's capital and operating costs is by employing one of the new direct leaching technologies to produce a final copper cathode product. These breakthrough sulfide copper heap leaching technologies may be done right at the mine site versus elsewhere, thus eliminating the need to use a concentrator, which is expensive to buy and operate, and transportation costs.
Goldman Sachs equity research analysts wrote in a research report they identified ten copper leaching breakthrough technologies currently being developed by copper companies, both majors and smaller independents, including Rio Tinto (OTC: RTNTF), BHP (NYSE: BHP), Jetti, AngloAmerican, and Codelco. Each company wants a more affordable method that will "improve recoveries from harder-to-leach, lower-grade primary sulfide ores and [will] utilize ...