Carbine Resources has announced an $8 million per annum agreement with chemical and mineral distributor Swancorp for the offtake of copper produced at its Mt Morgan copper and gold project in Queensland.
Under the terms of the agreement, Carbine and Swancorp have agreed a three-year exclusivity for mine gate sales of up to 1,200tpa of Mt Morgan copper sulphate, providing Carbine with a mechanism for near term sales of production from water treatment operations at Mt Morgan.
The two parties also left room for potential extension of the contract to up to 5,000tpa, with pricing set at a fixed formula relative to the London Metal Exchange copper cathode price.
“The offtake agreement provides a pathway for Carbine to potentially develop near term cash flow via copper processing at mount Morgan. Substantial dissolved copper exists in acidic water contained within the historical open pit. This copper can be extracted via the use of simple ion exchange water treatment,” the company said in a statement to the ASX.
“The development of a facility for copper extraction via pit water processing would also serve as a demonstration scale use of ion exchange technology for copper recovery from larger tailings retreatment facility.”