Baja updates El Boleo's economics - Mexico

Vancouver-based Baja Mining (TSX: BAJ) has updated the economics for its 70%-owned El Boleo copper project in Mexico's Baja California Sur state to include capex of US$889mn for annual output of 56,697t copper cathode, 1,708t cobalt cathode and 25,364t zinc sulfate monohydrate for the first six years of mine life.
The project has a resource of 265Mt grading 1.50% copper equivalent in measured and indicated resources and 159Mt at 1.15% in the inferred category.
El Boleo has an after-tax internal rate of return of 25.6% using the guidelines of the US Securities and Exchange Commission (SEC) or 27.9% at present market prices, the company said.
El Boleo's net present value at an 8% discount rate is US$1.31bn using SEC guidelines or US$1.47bn at market values.
"This update now provides a strong foundation for completing construction financing and recommencing construction of the mine and processing facility in order to move to production as soon as possible," Baja CEO John Greenslate said.