CuFe speeds ahead as study outlines robust Orlando copper-gold open pit economics

• CuFe’s Orlando scoping study shows $355m NPV with 59% IRR from open pit cutback
• Project could generate revenue of $1.26bn from production of 39,449t copper and 167,419oz gold
• Capex estimated at $136m with payback expected in 1.9 years

Special Report: CuFe has unveiled a scoping study highlighting the strong economics of the Orlando open pit cutback within its 55%-owned Tennant Creek copper-gold project in the Northern Territory.

The study found that a standalone development of Orlando could generate net present value and internal rate of return – both measures of potential profitability – of $355m and 59% respectively.

NPV could improve to $462m if copper and gold spot prices as at July 1, 2025, are used.

Orlando will also deliver revenue of $1.26bn from the production of 39,449t of copper and 167,419oz of gold.

CuFe (ASX:CUF) estimates total pre-production capital expenditure, which includes the construction of a new processing plant, at $136m with payback in 1.9 years.

The scoping study assumes that 3.5Mt of the Orlando resource will be produced at feed rates of 1.33% copper and 1.8g/t gold – about one third of the total Tennant Creek resource of 10.35Mt at 1.53% copper and 0.92g/t gold.

Orlando is on a granted mining lease and has been the subject of historical mining on an open pit and underground basis assisting the approval process.

Robust economics

Executive director Mark Hancock said the company was excited to have completed the Orlando scoping study, which demonstrated robust economics at the selected long-term pricing of $13,806/t copper and $4250/oz gold.

“Given the current scoping study envisages the Orlando open pit absorbing the whole cost of a new plant, any additional tonnes will be able to leverage off the existence of that plant and have the potential to significantly extend the plant’s life,” he added.

“In addition to the opportunity to add tonnes from the company’s existing underground resources at Gecko and Orlando, we also have a number of exploration targets to drill in the region and the potential to integrate tonnes from our Tennant Creek Alliance partners as their projects mature.”

Hancock noted that investment and offtake interest from significant strategic players and customers had increased following the recent acquisition of Tennant Creek Mining Group by Pan Africa Resources and first production occurring at their gold plant last month.

“This interest is encouraging as we move into the next phase of detailed feasibility, approvals and funding,” he said.

The scoping study considers a cut back to the existing Orlando open pit in Tennant Creek and the installation of a processing plant capable of producing copper and gold.

Resources scheduled for extraction in the study’s production target are based on 78% higher confidence indicated resources and 22% inferred resources.

CUF noted the results of the scoping study had led the company’s board to endorse progressing to a feasibility study that would focus on the Orlando open pit with the potential to add additional resources from Orlando or Gecko underground as well as third parties.

An updated resource for Gecko is already being prepared and is expected to be completed in the next month.

The next phase of study will include further investigation of second hand plant options, which could reduce the required capital, and opportunities for value adding beyond the current scoping study assumption of producing concentrate for export via Darwin or sale to Mt Isa.

CUF will also progress environmental and heritage approvals required to commence project execution along with funding and offtake discussions to support a final investment decision once the feasibility study is complete.

This article was developed in collaboration with CuFe, 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.