The results of the Preliminary economic assessment (PEA), which has been made by Nevsun Resources, show that the overall project value of the future copper and gold mine Cukaru Peki near Bor is USD 1.5 billion.
The initial costs of direct investment prior to the beginning of production and exploitation are USD 630 million, which will be spent until the opening of the mine, in 2021, and the expectation is that a million tons of copper can be produced during a 15 years long mine life.
About 37 percent of the initial capital pertains to the development of underground mining infrastructure, along with the decline, including the construction of 22-kilometer long tunnel below the surface for the purpose of mining. Another 30 percent of costs pertain to the construction of surface mining objects and infrastructure, as well as equipment for the processing of ore and copper concentrate, plus the system for the management and treatment of wastewater and the facilities for the disposal of tailings. The remaining 30 percent pertains to the costs of development, the acquiring of land and other costs needed for realization of the project.
Peter Kukielski, CEO of Nevsun, emphasizes that PEA confirms exceptionally good economic results of the realization of the Timok Upper Zone project.
„We continue to work on defining the costs of the project and of carrying out the plan that will include more detailed projections. Additional planning and elaboration of the project is underway, along with metallurgical research prior to the Preliminary Feasibility Study, and our plan, as of the beginning of 2018, is to start mining activities through decline. Together with the Government of Serbia, we are working to get the necessary licences, with the aim of commencing the exploitation and production in 2021“, Kukielski said.
CFO of Nevsun, Ryan MacWilliam, has stated that Nevsun has enough operational capital and is operating without debts, which – along with the positive economic results of the Timok project – allows Nevsun to fund the construction and realization of the project.