Coda Minerals Initiates Mining Study and Metallurgical Tests at Elizabeth Creek

Project Overview

Coda Minerals Limited has started an open pit mining study for the Cattle Grid South deposit, a satellite deposit of the Elizabeth Creek Copper-Cobalt Project. This study is a crucial step in integrating the newly estimated Mineral Resource into the broader project development plan.

The Cattle Grid South Mineral Resource, announced on 3 July 2024, includes an Inferred Resource of 5.8 million tonnes at 0.62% copper, containing approximately 36,000 tonnes of copper and 500 tonnes of cobalt, with accessory silver and zinc. This deposit complements the existing Mineral Resource base at Elizabeth Creek, which contains over 1 million tonnes of copper equivalent.

Metallurgical Test Work

In addition to the mining study, Coda Minerals is advancing a program of metallurgical test work to confirm and refine the recently announced recovery improvements from the application of novel oxide collectors to the flotation of material from the Windabout deposit. This test work is being extended to other key deposits within the Elizabeth Creek Project, including MG14 and Emmie Bluff.

Scoping Study Update

These initiatives will form the basis of a major update to the Elizabeth Creek Scoping Study, expected early next quarter. The updated study will incorporate the positive changes from the mining study and metallurgical test work, potentially leading to a significant uplift in the project’s economics. The project's Net Present Value (NPV) has already increased by 45% between the first and most recent iterations, with the Internal Rate of Return (IRR) improving from 26.5% to 31%.

CEO's Statement

Coda CEO Chris Stevens stated, 'Our approach to the baseline work at Elizabeth Creek has yielded significant benefits to date. The addition of Cattle Grid South is expected to provide a material benefit by adding valuable additional tonnes that are highly conducive to flotation and concentrate sales.'

Stevens also emphasized the importance of confirming the recovery improvements, which demonstrated a roughly 12% improvement in copper recovery for a given grade versus the baseline flowsheet. 'Improvements in recovery represent an enormously cost-efficient way of extracting more copper from a given mined tonne,' he added.

Next Steps

Coda Minerals is undertaking various work streams that will culminate in an updated Scoping Study. The most significant work program involves benchtop metallurgical test work aimed at confirming the improvements to rougher flotation recoveries using novel oxide collectors at the Windabout deposit. This will be followed by supplementary testing and conversion from rougher to cleaner concentrates.

The mining study for Cattle Grid South is estimated to take approximately two weeks to complete, and the updated Scoping Study is expected to be finalized by mid-to-late September.