CuFe’s Orlando Open Pit Study Unveils $355m NPV, Eyes Feasibility Next

Robust Economics Highlight Orlando’s Potential

CuFe Limited (ASX – CUF) has released the results of its scoping study for the Orlando open pit project, a key asset within the Tennant Creek copper and gold region. The study paints a promising picture, with a net present value (NPV) of approximately AUD 355 million on a 100% ownership basis, an internal rate of return (IRR) of 59%, and a payback period of just under two years. These figures improve significantly to an NPV of around AUD 462 million when applying spot metal prices as of July 2025.

The project envisages mining 3.5 million tonnes of ore over five years, with average grades of 1.33% copper and 1.8 grams per tonne gold. This represents roughly one-third of CuFe’s total Tennant Creek resource base, which stands at over 10 million tonnes. The study assumes development of a standalone processing plant with an annual capacity of 850,000 tonnes, requiring a pre-production capital expenditure of AUD 136 million, the bulk of which is allocated to plant purchase and installation.

Strategic Partnerships and Cost Optimization

CuFe is exploring opportunities to reduce upfront capital costs by potentially sharing the processing plant infrastructure with its Tennant Creek alliance partners, Emmerson Resources and Tennant Minerals. Additionally, sourcing second-hand plant equipment is under consideration, which could lower capital requirements and shorten lead times. The conventional processing flowsheet proposed broadens the range of plant options, enhancing flexibility.

Located on a granted mining lease with a history of both open pit and underground mining, the Orlando site benefits from existing infrastructure and logistical advantages, including proximity to the Stuart Highway, rail access to Darwin Port, and established water and power supplies. The project’s concentrate is planned for export via Darwin, with Mt Isa as a potential alternative processing location.

Advancing Towards Feasibility and Approvals

Following the positive scoping study results, CuFe’s board has endorsed advancing to a detailed feasibility study. This next phase will focus on refining mine design, metallurgical test work, environmental and heritage approvals, and securing funding and offtake agreements. The company has noted strong inbound interest from major trading houses and strategic investors, signaling market confidence in the project’s prospects.

Environmental studies to date have not identified significant biophysical constraints, and heritage clearance work is underway. CuFe aims to minimize the project’s disturbance footprint to facilitate a smoother approval process. The feasibility study will also investigate the potential to extend the plant’s life by incorporating additional feed sources from CuFe’s underground resources and third-party projects within the Tennant Creek Alliance.

Preliminary Nature and Forward Outlook

Significantly, the scoping study carries a ±50% accuracy and does not yet support the declaration of ore reserves. The project’s economic viability is not dependent on inferred resources, which constitute a smaller portion of the early mine plan. CuFe’s management remains cautiously optimistic, emphasizing the need for further drilling, resource upgrades, and detailed engineering studies to confirm the project’s potential.

With copper and gold prices currently elevated, the Orlando project stands to benefit from favourable market conditions. The company’s strategy to leverage alliances and optimize capital expenditure could position it well for a successful development phase.