The Sepon copper project came into production in 2005 at an estimated capital cost of US$235M. The adjacent gold mine, also owned by MMG (formerly Oz Minerals), was commissioned in 2002 and is considered separately in the Wood Mackenzie Gold Mine Cost Study.
This Copper Metals Mine report provides a detailed analysis of the cost profile, geology, reserves and future production for this mine, as well as a detailed location map.
Copper producers, advisors and financial companies can use this report to better understand asset value and efficiency of the operation. It will also help you benchmark against similar mines, identify acquisition opportunities and examine evolving cost structures to strengthen business strategies.
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The Sepon copper project came into production in 2005 at an estimated capital cost of US$235M. The adjacent gold mine, also owned by MMG (formerly Oz Minerals), was commissioned in 2002 and is considered separately in the Wood Mackenzie Gold Mine Cost Study. By end-2013, due to low gold prices and high operating costs, the gold operation was placed on care and maintenance.
Additional mineralization occurs at the neighbouring Thengkham North and South deposits located 7km from Khaong.
The accompanying analysis is based upon mining of the Khanong copper deposit which is a near-surface, high-grade supergene orebody. Primary mineralisation at Khanong was a semi-massive sulphide deposit which was completely weathered and oxidised to create a high-grade chalcocite enrichment blanket. Immediately below lies a very high-grade copper oxide zone comprising malachite, azurite, cuprite and minor amounts of native copper.
The Sepon / Khanong project is costed on a stand-alone basis. The gold and copper projects do not share a common process route and share little infrastructure and so no gold credit is applied to the copper costs at Sepon / Khanong. The accompanying analysis also excludes the revenue from the 200koz contained in the gold gossan that was mined and stockpiled as part of the Khanong pre-strip. It is also assumed that low-grade material stockpiled in the early years of mining will be processed during the last three to four years of operation. The mining costs shown in these years represent stockpile reclaim expenses.
Given reserves, stockpiles and processing rates, we estimate the mine to operate until 2021. Although there is potential for mine life extension should some supergene resource be converted - this is not modelled in the accompanying analysis.
Reserves and resources
In this report there are 2 tables or charts, including:
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Asset report | Nov 2015
Sepon (Khanong) SxEw copper mine
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