Revolver flags strong restart case for Dianne copper mine
Australia-listed Revolver Resources has outlined a compelling business case to restart its Dianne copper mine in north Queensland, following the completion of a detailed recommencement study that points to low capital intensity, rapid payback and robust cash generation.
The study, which integrates updated resources, metallurgical testwork and site-specific engineering, indicates forecast pre-tax free cash flow of more than A$125-million over a four-year mine life, based on mining and processing about 1.65-million tonnes of ore.
At an assumed copper price of $10 500/t, the project delivers a pre-tax net present value, using a 10% discount, of A$69-million and an internal rate of return of 35%, with capital expenditure to restart production estimated at A$19.7-million. Payback is expected in about 12 months.
Revolver plans to use a heap leach and solvent extraction/electrowinning (SX-EW) flowsheet to produce about 14 300 t of A-grade copper cathode, with total production costs estimated at A$5 045/t.
MD Pat Williams said the study confirmed Dianne’s potential as a near-term cash-generating asset capable of funding broader growth initiatives.
“The Dianne project continues to deliver a compelling upside opportunity for shareholders. The detailed results from the study clearly illustrate the potential of a high value, short duration operating project with the potential to generate a material level of free cashflow that could be used to fund significant ongoing growth initiatives for the company,” Williams said.
“The full suite of relevant technical work completed over a 2-year period has identified a compelling commercial outcome from the near surface, continuous Dianne deposit – which demonstrates excellent amenability to leaching and SX-EW processing in order to produce LME copper cathode from onsite facilities.”
He added that conservative assumptions had been applied and that further upside remained from near-mine exploration and potential extensions to the resource.
“With a range of additional deposit extension opportunities available proximate to the planned openpit operations, further upside potential clearly also remains,” Williams said.
“The comprehensive range of technical and engineering work programmes completed, and results achieved, provide a confident foundation to conclude targeted funding arrangements for the project and commence construction activities.”
Dianne, located about 265 km north-west of Cairns, is centred on a historic copper mine that operated between 1979 and 1983. Revolver listed with 100% ownership of the project in 2021 and is positioning the restart as a stepping stone to longer-term growth across its broader copper portfolio, including the Osprey project.
