The Boa Esperanҫa copper project is located within the Carajás Mineral Province, southeastern Pará State, Brazil, approximately 40km southwest of the town of Tucumã. The results of an Optimized Feasibility Study were announced on September 28, 2021. The project is expected to add 326 thousand tonnes of recovered copper over an initial mine life of 12 years. The Optimized Feasibility Study highlights:
- Upfront Capital Costs of approximately US$294 million
- Life-of-Mine average annual copper production of 27 kt at C1 Cash Costs of US$1.36/lb
- First 5 years: average annual copper production of 35 kt at C1 Cash costs of US$1.12/lb
- Post-tax NPV8% of US$380 million
- Post-tax IRR of 41.8%
- Post-tax payback period of 1.4 years
Detailed engineering design efforts are currently underway with early construction works expected to commence during H1 2022, subject to the approval of Ero’s Board of Directors.
Significant exploration upside identified within an under-explored area within the final pit limits, known as the “Gap Zone”, is expected to enhance the Project by (i) confirming continuity of mineralization between near-surface high-grade zones and high-grade zones near the pit limits at depth; and, (ii) converting material currently classified as waste into mineral resources.