CuFe Unveils $355m NPV Orlando Scoping Study, Eyes Further Resource Growth

Robust Economics at Tennant Creek

CuFe Ltd (ASX, CUF) has made significant strides in its Tennant Creek copper-gold project, highlighted by the release of a scoping study for the Orlando open pit. The study, announced shortly after the June quarter, reveals an attractive net present value (NPV) of $355 million on a 100% project basis, with CuFe’s 55% share underpinning a substantial value proposition. Notably, this valuation rises to $462 million when applying spot metal prices, underscoring the project's sensitivity to market conditions.

The scoping study’s positive outcome is anchored on the standalone economics of the Orlando open pit cutback, which carries the full capital cost of a new processing plant. CuFe’s Executive Director Mark Hancock emphasized the potential upside from future resource expansions, including reopening historical underground workings at Orlando and Gecko, and leveraging third-party ore from alliance partners to share plant capital costs.

Resource Upgrades and Exploration Momentum

During the quarter, CuFe advanced resource delineation efforts, upgrading the indicated portion of the Orlando resource from 42% to 56%, enhancing confidence in the project's development potential. An updated Mineral Resource Estimate (MRE) for the Gecko deposit is expected imminently, which could further bolster the resource base.

Exploration activities extended beyond Tennant Creek, with a reconnaissance visit to the Camp Creek tenement near the Yarram iron ore project. Rock chip sampling confirmed high-grade iron ore at surface, with assays reaching an impressive 67.91% iron content and low deleterious elements, presenting a compelling target for further exploration and potential development given its logistical advantage near Darwin port.

Advancing Access and Broader Project Portfolio

CuFe secured permission for entry from the Minister for Aboriginal Affairs to three of its four tenements in the West Arunta region, clearing a critical hurdle for on-ground exploration activities. This progress follows a Land Access Agreement with Traditional Owners, reflecting the company’s commitment to responsible engagement.

Elsewhere, CuFe continues to manage its diverse portfolio, including the Yarram iron ore joint venture, the Pilbara gold projects, and interests in the Bryah Basin. While some projects saw limited activity this quarter, the company remains poised to capitalize on opportunities as they arise.

Financial Position and Funding Outlook

CuFe ended the quarter with $2.234 million in cash, having spent $367,000 on exploration and evaluation activities. Payments to related parties totaled $135,000, primarily director fees. The company acknowledges that its current funding runway extends for approximately 1.8 quarters at existing expenditure levels but notes that some costs related to the now-exited JWD iron ore project will not recur.

Management is actively reviewing funding options, including potential equity raisings and the sale of non-core assets, to support ongoing exploration and development. The company remains confident in its ability to continue operations and meet business objectives, adjusting planned activities in line with available resources.