Caravel Minerals on track with DFS for namesake copper project

Caravel Minerals is on track to complete the Definitive Feasibility Study (DFS) for its namesake copper project in WA in the first half of 2024.

Key workstreams are well advanced, with the company recently commissioning an independent review by Lycopodium Minerals of the optimised Pre-feasibility Study (PFS) process flowsheet published last year.

The comminution circuit review is being undertaken by Orway Mineral Consultants, with input from European process equipment manufacturer, Weir Minerals, who specialise in High-Pressure Grinding Roll (HPGR) circuit design.

The aim is to investigate the process flowsheet from primary crushing to dewatering circuits to identify process plant opportunities and confirm the absence of technical gaps prior to commencing the next phase of engineering in the second half of 2023.

Production poised to leverage copper price

Caravel Minerals (ASX:CVV) says initial results from this review indicate potential for plant simplification and increased capacity, and that opportunities to optimise the metallurgical flowsheet will be further investigated during the DFS.

Plus, the project is scheduled to start production at the same time as forecast deficits in the copper market and increases in copper price, with each US$0.50/lb copper price increase equating to a ~A$0.9 billion increase in Net Present Value, the company says.

“Over the past several months, the team has made excellent progress on key workstreams that will enable the completion of a high-quality definitive feasibility study in the first half of 2024,” MD Don Hyma said.

“The project’s leverage to the copper price, together with its location and size, represents a timely opportunity to develop a new production business in response to forecast deficits in the copper market and increases in copper price.”

Caravel Minerals ASX CVV — Proposed layout for the PFS optimised processing plant at the Caravel copper project. Pic: Supplied (CVV)

Key workstreams advancing

Ground water drilling and modelling to delineate process water supply and secure licences is also underway at the project, along with the submission of a grid power access application to network owner Western Power with approval expected in Q2 2024.

Caravel has commenced the formal environmental approval process, with a decision on the level of assessment by the State Regulator expected in Q2 2023.

Discussions have commenced with mining equipment manufacturers for the supply of an automated and electrified mining fleet and the company anticipates it will enter a commercial arrangement with a preferred supplier later in the year.

And drilling is also underway, with the aim of establishing the design parameters required for open pit mine design, and a cost-effective general arrangement of process plant equipment and supporting non-process infrastructure.

The company will also collect samples for continuous metallurgical testing for detailed engineering design.

The drilling program is scheduled for completion in Q3 2023.

This article was developed in collaboration with Caravel Minerals Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.