Redhawk Resources, Inc.
) said the results of a preliminary economic assessment (PEA) show pre-tax net present value of US$488 million at 7.5% discount rate and US$794 million at 5% discount rate and 16% internal rate of return at US$3.30 copper over an 18 year mine life for the Copper Creek copper-molybdenum project in San Manuel, Arizona.
The PEA used a mining and milling rate of 25,000 short tonnes per day.
According to the Redhawk Resources press release
, the mine will have an average total operating cash cost of US$1.74 per pound copper net of byproduct credits with an average annual production of 121.7 million pounds of salable copper.
"The results of the 2013 PEA confirm the economic potential of the Copper Creek project and a successful growth in project scale from a 10,000 tonnes per day operation in the 2009-2010 NI 43-101 scoping study to the 25,000 tonnes per day operation in the current NI 43-101 PEA,” said R. Joe Sandberg, President and CEO.
Redhawk is a resource exploration and development company.
On Tuesday, Redhawk rose 2.8% and was trading at $0.365 a share. The company had market cap of $53.7 million, based on 147 million shares outstanding.