Business
Barksdale Announces San Javier Preliminary Economic Assessment
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2024) - Barksdale Resources Corp. (TSXV: BR...
About this update from Barksdale Resources Corp.
[{"type":"text","content":"Barksdale Announces San Javier Preliminary Economic AssessmentVancouver, British Columbia--(Newsfile Corp. - May 9, 2024) - Barksdale Resources Corp. (TSXV: BRO) (OTCQX: BRKCF) (\"Barksdale\" or the \"Company\") is pleased to announce the positive results of a Preliminary Economic Assessment (\"PEA\") completed on the San Javier oxide copper-gold project located in Sonora, Mexico. The PEA envisions a modest capital cost project utilizing conventional open-pit mining with a solvent-extraction and electrowinning (\"SXEW\") plant to produce LME-grade copper cathodes on-site. A copy of the PEA, prepared in accordance with the requirements set forth in Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (\"NI 43-101\") will be filed under the Company's SEDAR+ profile within 45 days of this news release. All currency references in the PEA and this news release are in U.S. Dollars.PEA HighlightsSan Javier PEA shows robust economics using a conservative base case copper price of $4.00 per pound.13-year mine life producing 209 million pounds of cathode copper via an on-site SXEW;Conventional open pit mining with a very low waste to ore ratio of 0.66 to 1;Life of mine average cash costs of $2.16/lb copper produced;Pre-tax NPV (7%) of $111.8 million, with an IRR of 26.3% and payback of 3.8 years;After-tax NPV (7%) of $61.5 million, with an IRR of 18.1% and payback of 5.3 years;At $4.50/lb copper, the after-tax NPV (7%) increases significantly to $103.3 million, with an IRR of 24.8% and a payback of four years;Low initial capital costs of $116.8 million; andExcellent growth opportunities including resource expansion, assessing the potential for gold recovery, and run of mine processing.Rick Trotman, President and CEO of Barksdale, states, \"The results of our PEA on San Javier outline a very simple operation with compelling economics. This base-case provides the foundation from which additional economic upside can be unlocked, such as the significant resource expansion opportunities at the Cerro Verde orebody, exploration upside at Mesa Grande and La Trinidad, and additional metallurgical testing to recover gold. In today's market it's rare to find a simple development project with such low upfront capital costs.\"PEA SummaryThe PEA, led by Tetra Tech Canada, was initiated in early 2023 and is based on the miner...