CuFe’s Tennant Creek Expansion Raises Questions on Cost and Development Pace
CuFe Ltd has announced a substantial upgrade to its Orlando deposit within the Tennant Creek JV, with contained copper and gold soaring by 120% and 89% respectively, while progressing a key scoping study and appointing a seasoned geologist to its board.
- Orlando deposit JORC resource increased by 89% gold ounces and 120% copper tonnes
- Tennant Creek JV resource totals 10.35 million tonnes at 1.53% copper and 0.92 g/t gold
- Scoping study underway to explore joint processing and operational synergies
- New exploration tenement granted at Camp Creek near Darwin
- Experienced ex-Tinto geologist David Palmer appointed Non-Executive Director
Significant Resource Upgrade at Orlando Deposit
CuFe Ltd (ASX: CUF) has delivered a major boost to its Tennant Creek Copper Project with an updated JORC resource estimate for the Orlando deposit. The contained gold ounces have surged by 89%, while contained copper tonnes have jumped 120%, marking a transformative step for the project’s scale and potential economics. The total Tennant Creek JV resource now stands at 10.35 million tonnes grading 1.53% copper and 0.92 grams per tonne gold, underscoring the project's growing significance in CuFe’s portfolio.
Progress on Scoping Study and Operational Synergies
Alongside the resource upgrade, CuFe is advancing a scoping study in collaboration with its Tennant Alliance partners, including Emmerson Resources and Tennant Minerals. This study is evaluating joint processing options, underground metallurgical test work, mine design optimisations, and logistical efficiencies. The goal is to unlock operational synergies that could reduce capital and operating costs, enhancing the project's viability and attractiveness to investors.
Exploration and Development Across Multiple Fronts
CuFe’s exploration momentum extends beyond Tennant Creek. The company secured a new exploration tenement at Camp Creek, Northern Territory, strategically located near Darwin port and prospective for high-grade iron ore. Meanwhile, work continues on the Yarram iron ore project, West Arunta niobium-copper project, and Pilbara gold prospects, reflecting a diversified approach to resource development. The company is also investigating low strip ratio, low-cost mining opportunities at the Captain Morgan Fe-deposit.
Corporate Developments and Financial Position
In a notable board change, CuFe appointed David Palmer, an experienced geologist and former Tinto and Rio Tinto executive, as Non-Executive Director, following the resignation of Nicholas Sage. This appointment is expected to bring valuable technical and strategic insights as CuFe advances its projects. Financially, the company ended the March quarter with $3.486 million in cash, incurred $368,000 in exploration expenditure, and $1.628 million in mining production costs, maintaining a solid footing to support ongoing activities.
Looking Ahead
CuFe’s next critical milestone will be the completion of the Tennant Creek scoping study, anticipated to clarify the economic impact of the resource upgrades and operational synergies. Investors will be watching closely to see how these developments translate into project advancement and value creation. Meanwhile, ongoing exploration and tenement management across multiple jurisdictions signal a company actively positioning itself for growth in the competitive copper and gold sectors.
Bottom Line?
CuFe’s resource leap and strategic moves set the stage for a pivotal phase in Tennant Creek’s development and broader portfolio growth.
Questions in the middle?
- How will the scoping study outcomes influence CuFe’s development timeline and capital requirements?
- What are the potential cost savings and operational efficiencies from the joint processing options under review?
- How might David Palmer’s appointment shape CuFe’s exploration and project execution strategies?
