St. Augustine Announces Positive Results of the Kingking Copper-Gold Project Updated Preliminary Feasibility Study
Executive Summary
- St. Augustine Gold and Copper Ltd. released an updated PFS for the Kingking Cu‑Au project showing a post‑tax NPV of $4.18 billion and IRR of 34.2%, with a benefit‑cost ratio of 1.8.
- The study confirms 960 Mt of mineral reserves (849 Mt milling, 111 Mt leaching) supporting 4.4 bn lb of payable copper and 6.9 mn oz of gold over a 38‑year mine life; first‑5‑year average production is 284 M lb Cu and 333,000 oz Au per year.
- Capital estimate remains at $2.37 bn (initial) with a projected payback of 1.9 years, cash cost of $2.06/lb Cu (C1 $0.32/lb net of gold credits), and strong operating margins under base‑case metal prices.
Key Details
- Economic Highlights
- Post‑tax NPV @7%: $4.18 bn
- After‑tax IRR: 34.2% (base case) – sensitivity up to 44.5% with +20% metal prices.
- Benefit‑Cost Ratio (BCR): 1.8
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Payback period: 1.9 years (initial capital).
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Reserves & Resources
- Proven & probable milling reserves: 849 Mt @ 0.26% Cu, 0.36 g/t Au.
- Proven & probable leaching reserves: 111 Mt @ 0.23% Cu.
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Total copper‑equivalent grade (first 5 yr): 0.83%; life‑of‑mine average 0.48%.
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Production Forecast
- First 5 years: 284 M lb (129 kt) Cu and 333,000 oz Au annually.
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Life‑of‑mine total payable metal: 4.4 bn lb Cu (2.0 Mt) and 6.9 mn oz Au (214 t).
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Capital & Operating Costs
- Initial capital (incl. sustaining): $2.37 bn (base case); $2.85 bn under +20% CAPEX scenario.
- Sustaining capital: $0.80 bn.
- Total operating cost: $16.11/tonne ore (base).
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C1 cash cost: $2.06/lb Cu, net of gold credits $0.32/lb Cu.
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Metal Price Assumptions (Base)
- Copper: $4.30 lb⁻¹
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Gold: $2,150 oz⁻¹
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Project Schedule
- Year 1‑2: Mine development & heap‑leach construction.
- Year 3: SX‑EW cathode production begins; mill construction completed.
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Year 4: First copper concentrate and gold doré production.
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Regulatory Status
- Environmental Impact Statement (EIS) approved (2015); DMPF approved (2016).
- ECC in good standing; ISO 14001‑2015 EMS certified (2018).
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Mineral Processing Permit currently lapsed – renewal work underway.
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Technical Advisors
- PFS prepared by M3 Engineering & Technology Corp. (Tucson, AZ).
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Reserve modeling and cost estimates by Independent Mining Consultants Inc. (IMC).
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Opportunities for Further Optimization
- Chloride leach of low‑grade sulfide stockpile to accelerate cash flow.
- Grinding efficiency upgrades (high‑pressure grinding rolls).
- Locked‑cycle flotation reagent optimization.
Notable Quotes
“The updated PFS is a long‑awaited milestone… The project will produce copper at one of the lowest rates worldwide and position Kingking among the top global producers.” – Michael G. Regino, COO
“Kingking is essentially shovel‑ready with permitting largely in place; we are now focused on moving to definitive feasibility.” – Nico Paraskevas, Executive Director