Lundin Mining Announces Vicuña Integrated Technical Study Results Highlighting a World-Class Mining District
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NEWS RELEASE
Lundin Mining Announces Vicuña Integrated Technical Study Results Highlighting a World-Class Mining District
Vancouver, February 16, 2026 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) is pleased to announce the results of the integrated technical study (the Preliminary Economic Assessment "PEA" or the "Study") for the Vicuña project (the "Vicuña Project" or the “Project”). The Vicuña Project is comprised of the Filo del Sol deposit and the Josemaria deposit and is held by Vicuña Corp. (“Vicuña”), a 50/50 joint arrangement between Lundin Mining and BHP. Unless otherwise indicated, all dollar amounts are stated in United States dollars ("$") and presented on a 100% basis.
Jack Lundin, President and CEO of Lundin Mining, commented, "The publication of these impressive results marks a significant milestone and a major step towards advancing the Vicuña Project to a sanction decision. The progress achieved since the formation of Vicuña Corp. has been exceptional, and this Study establishes a solid foundation for moving the Project forward while continuing to refine later stages and drive further improvements in cost, schedule, and production.
“The Study outlines a project that would rank among the top five copper, gold, and silver mines globally. A staged development approach provides a disciplined pathway to unlock the full value of the district, enabling sequenced capital deployment, effective risk management, and ongoing optimization while delivering substantial, long-life copper production growth over multiple decades.
“With the announcement on Thursday for commitments to upsize our credit facility to $4.5 billion, Lundin Mining is fully funded for the initial phase of construction, and we remain on course to achieve our goal of becoming a top-ten global copper producer with annual production of over 500,000 tonnes of copper and 550,000 ounces of gold once Vicuña is in full operation.”
Study Highlights
The development of the Vicuña district is envisioned in a staged approach. Stage 1 encompasses a sulphide mill and the Josemaria deposit, establishing an initial open pit mine and concentrator designed for future expansion to accelerate first production and early cash flow. Stage 2 builds on this foundation by developing the Filo del Sol leachable oxides and a corresponding SX/EW plant for copper, gold and silver recovery. Stage 3 represents the long-term maturation of the district through expansion of the concentrator and development of the Filo del Sol sulphide deposit, enabling peak, sustained production, positioning the Vicuña Project as a long-life, globally significant copper operation. Stage 3 also integrates key district infrastructure, including a desalination plant and associated pipeline, and return concentrate slurry pipeline, to support expansion of the district.
- Potential to be a top five copper, gold, and silver mine: Average annual production of 400,000 tonnes copper, 700,000 ounces (“oz”) gold and 22 million ounces (“Moz”) silver over the first 25 full years of operation.
- Peak production of +500 ktpa copper: Average production over a ten-year period of over 500,000 tonnes copper, 800,000 oz gold and 20 Moz silver or 800,000 tonnes copper equivalent1 (“CuEq”).
- Multi-generational asset: Initial +70-year life of mine ("LOM"), producing approximately 22.3 million tonnes (“Mt”) of copper, 37.2 Moz of gold and 763 Moz of silver.
1 Copper equivalent (CuEq) based on production after recoveries and metal prices of $4.60/lb Cu, $3,300/oz Au and $40/oz Ag. Recoveries for production are disclosed below for reference.
- First quartile cost profile: Average cash cost2 (net of by-product credits) per pound of copper of negative ($0.20/lb) and an all-in sustaining cost2 (“AISC”) per pound of copper of $0.47/lb (net of byproduct credits) over the first 25 full years of operation.
- Staged development: Enables Vicuña to incorporate ongoing optimization for the later phases of the Project, manage development risk and fund future development through operating cash flow.
- Significant free cash flow: Average annual free cash flow2 of $2.2 billion per year (after expansionary capital) during the first 25 full years of operation.
- Leveraged to copper and gold: LOM revenue contribution of approximately 60% copper, 32% gold and 8% silver.
- Capital intensity below $30,000/tonne CuEq: Stage 1 capital of $7.1 billion with an after-tax payback period of 8.4 years3 and an after-tax internal rate of return ("IRR") of 14.8% which includes all the stages.
- Resource growth: The updated Mineral Resource grew significantly compared to the previous estimate4
- Contained copper of 14 Mt Measured and Indicated (“M&I”) and 32 Mt Inferred. An increase of 12% in contained M&I and 28% Inferred copper.
- Contained gold of 36 Moz M&I and 61 Moz Inferred. An increase of 12% contained M&I gold and 26% Inferred gold.
- Contained silver of 729 Moz M&I and 1,051 Moz Inferred. An increase of 11% M&I silver and 30% Inferred silver.
- Base-case scenario that establishes a world-class project: Net present value ("NPV8%") of $9.5 billion after-tax at $4.60/lb copper, $3,300/oz gold and $40/oz silver.
- Stage 1 is clearly defined providing a blueprint for initial development, ongoing studies on Stages 2 and 3 are expected to deliver further optimization.
- At spot copper, gold and silver prices ($6.00/lb copper, $5,000/oz gold and $80/oz silver), the NPV8% increases to $28.8 billion and the IRR to 25.5% with a payback of 5.4 years.
The Study marks a significant milestone for the Company and our partner BHP, positioning us to make a potential sanctioning decision as early as year-end. Next steps include detailed design and engineering for Stage 1, ramp up of project readiness activities and upgrades to the access road, all of which will advance the Project toward long-life, high-quality copper production while unlocking value across the broader district.
Details of the Vicuña integrated technical study will be presented in a webcast conference call on Tuesday, February 17, 2026 at 7 AM PT | 10 AM ET. Webcast and conference call details are provided below.
Webcast / Conference Call Details:
Date: Tuesday, February 17, 2026 Time: 7:00 AM PT | 10:00 AM ET Listen only webcast: WEBCAST LINK Dial In for Investor & Analyst Q&A: DIAL IN LINK
The Preliminary Economic Assessment was prepared in accordance with National Instrument 43-101 ("NI 43- 101") standards on a 100% basis. The base case was completed at a copper price of $4.60/lb, a gold price of $3,300/oz and a silver price of $40/oz.
2 Cash Cost (net of by-product credits),all-in sustaining cost and free cash flow are Non-GAAP measures, please see the section "Cautionary Note Regarding Non-GAAP Measures" below. The Vicuña Project does not currently have operations and therefore does not have historical equivalent measures to compare to. As such, the Company cannot perform a reconciliation of these Non-GAAP measures.
3 Initial capital from the start of 2027 and payback period from the start of 2030.
4 See news release dated May 4, 2025 and previous technical report entitled “NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile”, with an effective date of April 15, 2025 for information with respect to the previous Mineral Resource estimate. The Project is a 50:50 joint venture between Lundin Mining and BHP Canada. Lundin Mining’s attributable interest in the Mineral Resource estimate is 50%.
The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Vicuña Study Details
Vicuña engaged a consortium of independent consultants, led by Fluor Corporation, a leading global engineering, procurement and construction management (EPCM) firm. Fluor provides professional and technical solutions across energy, chemicals, mining, infrastructure, and government sectors. The Study was supported by additional leading consultants with expertise in various fields, including Ausenco Pty Ltd, Inti Mining Smart Solutions., Knight Piesold Ltd., and SLR Consulting (Canada) Ltd.
The Study envisions a conventional open pit mining and milling operation with a nominal initial nameplate processing capacity of 175,000 tonnes per day (“tpd”) (approximately 64.0 million tonnes per annum “Mtpa”), with an anticipated expansion to 293,000 tpd (approximately 107.0 Mtpa). The Study evaluates the recovery of copper, gold, and silver through a conventional process plant that includes crushing, grinding, and flotation to produce a copper concentrate. In the initial years, the concentrator will be fed with mineralization from the Josemaria deposit and then transition over to mineralization from the Filo del Sol deposit providing higher grades. Oxide material overlaying the Filo del Sol deposit is treated separately via a two-stage heap leach process designed to recover copper-rich, copper–gold, and gold-rich minerals. The heap leach circuit will produce high-purity copper cathode and gold doré product.
Table 1. Summary of the Economic Metrics of the Vicuña Study
| PEA Results Summary | |||
|---|---|---|---|
| Copper price (base case) | $4.60/lb | ||
| Gold price (base case) | $3,300/oz | ||
| Silver price (base case) | $40/oz | ||
| Exchange rate (ARS Peso to US Dollar) | 1,300:1 | ||
| Peak annual copper production (10 yr avg.)* | 508 kt/yr | ||
| Peak annual gold production (10 yr avg.)* | 801 koz/yr | ||
| Peak annual silver production (10 yr avg.)* | 20.2 Moz/yr | ||
| Average annual copper production (25 yrs)* | 395 kt/yr | ||
| Average annual gold production (25 yrs)* | 711 koz/yr | ||
| Average annual silver production (25 yrs)* | 22.2 Moz/yr | ||
| Total copper production (LOM) | 22.3 Mt | ||
| Total gold production (LOM) | 37.2 Moz | ||
| Total silver production (LOM) | 763 Moz | ||
| Mine life | +70 years | ||
| Stage 1 nominal concentrator throughput | 64.0 Mtpa | 175,000 tpd | ||
| Stage 3 expanded nominal concentrator throughput | 107.0 Mtpa | 293,000 tpd | ||
| Heap leach capacity (throughput) | 24.0 Mtpa | ||
| Josemaria head grade (LOM) | 0.29% copper | ||
| 0.19 g/t gold | |||
| 1.1 g/t silver | |||
| Filo del Sol oxide head grade (LOM) | 0.24% copper 0.28 g/t gold 17.9 g/t silver | ||
| Filo del Sol sulphide head grade (LOM) | 0.39% copper | ||
| 0.27 g/t gold | |||
| 4.6 g/t silver | |||
| Josemaria average recovery (LOM) | 84.4% copper 63.7% gold 58.6% silver | ||
| Filo del Sol oxide recovery (LOM) | 64.5% copper | ||
| 56.7% gold | |||
| 75.6% silver | |||
| Filo del Sol sulphide recovery (LOM) | 83.4% copper 59.5% gold |
| 55.8% silver | |||
| Average operating costs (LOM inc. expansion) | Mining – $2.94/t mined | ||
| Concentrator & roaster – $7.80/t milled | |||
| Leaching – $11.16/t oxide | |||
| Site Services and water – $3.67/t total throughput | |||
| Conc. freight - $1.76/t total throughput | |||
| G&A – $1.62/t total throughput | |||
| Total average annual operating costs (LOM) | $2.1 B/yr | ||
| Cash cost (LOM net of credits)* | $0.74/lb copper | ||
| All-in Sustaining Cost (LOM net of credits)* | $1.38/lb copper | ||
| Stage 1 Sulphide mill and Josemaria mine capital | $7.1 B | ||
| Stage 2 Filo Oxide capital | $3.9 B | ||
| Stage 3 Filo Sulphides and mill expansion capital | $7.1 B | ||
| Sustaining capital including capitalized stripping and closure costs | $30.3B (over 70 years) | ||
| Average annual after-tax free cash flow | $2.2 B/yr (25 yrs) | ||
| NPV (after-tax) 8% | $9.5 B (base case) | ||
| IRR (after-tax) | 14.8% (base case) |
*First 25 years of commercial production beginning in the first full year of operations. Peak production over a 10 year average includes years 16 to 25. Cash cost per pound of copper, operating costs per tonne milled, free cash flow, expansionary capital and AISC per pound of copper are non-GAAP financial measures and sustaining capital is a supplementary financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures”.
Table 2. Economic Sensitivities, NPV8% ($B) - Leverage to Copper and Gold Price5
| Copper / Gold Price | $2,800 (oz) | $3,100 (oz) | $3,300 (oz) | $3,500 (oz) | $4,000 (oz) | $4,500 (oz) |
|---|---|---|---|---|---|---|
| $3.75/lb | $3.1 | $4.4 | $5.3 | $6.2 | $8.3 | $10.5 |
| $4.00/lb | $4.4 | $5.7 | $6.5 | $7.4 | $9.6 | $11.7 |
| $4.25/lb | $5.6 | $6.9 | $7.8 | $8.7 | $10.8 | $12.9 |
| $4.60/lb | $7.4 | $8.7 | $9.5 | $10.4 | $12.5 | $14.7 |
| $5.00/lb | $9.4 | $10.7 | $11.5 | $12.4 | $14.5 | $16.7 |
| 5.25/lb | $10.6 | $11.9 | $12.8 | $13.6 | $15.8 | $17.9 |
| $5.50/lb | $11.9 | $13.1 | $14.0 | $14.8 | $17.0 | $19.1 |
| $6.00/lb | $14.3 | $15.6 | $16.5 | $17.3 | $19.5 | $21.6 |
Table 3. Economic Sensitivities, IRR (%) - Leverage to Copper and Gold Price5
| Copper / Gold Price | $2,800 (oz) | $3,100 (oz) | $3,300 (oz) | $3,500 (oz) | $4,000 (oz) | $4,500 (oz) |
|---|---|---|---|---|---|---|
| 3.75/lb | 10.5% | 11.5% | 12.1% | 12.7% | 14.2% | 15.6% |
| $4.00/lb | 11.4% | 12.3% | 12.9% | 13.5% | 15.0% | 16.4% |
| $4.25/lb | 12.3% | 13.1% | 13.7% | 14.3% | 15.7% | 17.1% |
| $4.60/lb | 13.4% | 14.3% | 14.8% | 15.4% | 16.7% | 18.1% |
| $5.00/lb | 14.6% | 15.5% | 16.0% | 16.5% | 17.9% | 19.2% |
| 5.25/lb | 15.4% | 16.2% | 16.7% | 17.3% | 18.6% | 19.8% |
| $5.50/lb | 16.1% | 16.9% | 17.4% | 17.9% | 19.2% | 20.5% |
| $6.00/lb | 17.5% | 18.3% | 18.8% | 19.3% | 20.5% | 21.8% |
Deposit Geology and Mineral Resource
The Vicuña Project area of the central Andes encompasses the crest of the ridge along the Chile-Argentina border and the area eastward into Argentina between the Maricunga belt to the north and the El Indio belt to the south.
5 Economic sensitivities use a silver price of $40/oz.
| Regional mineralization in the area is typically related to porphyry and epithermal systems developed during the | |
| Late Oligocene to Miocene compressive stages of Andean arc development. The two major deposits thus far | |
| discovered on the Vicuña Project are the porphyry-epithermal systems of Filo del Sol and Josemaria. | |
| The Filo del Sol alignment is an approximately 8 kilometre (“km”) long, north to northeast trending series of | |
| prospects of mid-Miocene porphyry copper-gold and related epithermal mineralization. The Filo del Sol deposit | |
| lies along the alignment as an elongate 5.4 km long domain of contiguous mineralization across three zones: An | |
| older, more deeply eroded porphyry copper–gold mineralized domain in the Tamberías area; a slightly younger, | |
| partly blind to the surface porphyry copper–gold mineralized intrusions in the Aurora zone in the central domain; | |
| and deeper mineralization along a northeast trend in the Bonita area in the north. The domains together | |
| represent the mineralization around a large hydrothermal breccia centre cored by porphyry intrusions. | |
| The Josemaria deposit area is characterized by a Late Oligocene porphyry copper-gold system, emplaced along a | |
| north-trending structural corridor, to the east of Filo del Sol. The system includes disseminated porphyry style | |
| mineralization that also saw extreme telescoping and overprinting of the porphyry domain by advanced argillic | |
| alteration and related high-sulphidation mineralization. The reconstituted copper mineralization was upgraded | |
| in these telescoped domains, which were then additionally enriched through supergene processes when the | |
| high-grade part of the system was exposed to surface in modern times. | |
| Vicuña Mineral Resource Highlights | |
| • One of the world’s largest copper, gold, and silver resources6 | |
| o Contained copper of 14 Mt M&I and 32 Mt Inferred. | |
| o Contained gold of 36 Moz M&I and 61 Moz Inferred. | |
| o Contained silver of 729 Moz M&I and 1,051 Moz Inferred. | |
| • Compared to the previous Mineral Resource estimate (see news release dated May 4, 2025), contained metal | |
| at Vicuña increased by approximately 23% for copper, 20% for gold, and 21% for silver, reflecting growth | |
| across Measured, Indicated, and Inferred resource categories. |
The table below summarizes the Mineral Resource estimates for Filo del Sol and Josemaria deposits effective as of October 31, 2025 on a 100% basis. Additional important information is included in the notes following this news release. Table totals may not summate correctly due to rounding.
Table 4. Vicuña Mineral Resource Estimate
| 100% basis | ||||||||||||||||
| Type Category Tonnes (Mt) | Cu (%) | Au (g/t) | Ag (g/t) | Cu (kt) | Au (Moz) | Ag (Moz) | ||||||||||
| Filo del Sol Measured Sulphide Indicated | - 1,733 | - 0.46 | - 0.34 | - 6.0 | - 8,031 | - 19.2 | - 336 | |||||||||
| M&I | 1,733 | 0.46 | 0.34 | 6.0 | 8,031 | 19.2 | 336 | |||||||||
| Inferred | 8,721 | 0.34 | 0.18 | 2.9 | 29,683 | 51.5 | 823 | |||||||||
| Filo del Sol Measured Copper Oxide Indicated | - 467 | - 0.32 | - 0.27 | - 2.5 | - 1,474 | - 4.1 | - 38 | |||||||||
| M&I | 467 | 0.32 | 0.27 | 2.5 | 1,474 | 4.1 | 38 | |||||||||
| Inferred | 431 | 0.23 | 0.20 | 2.2 | 982 | 2.7 | 30 | |||||||||
| Filo del Sol Measured Gold Oxide Indicated | - 301 | - - | - 0.25 | - 2.7 | - - | - 2.4 | - 26 | |||||||||
| M&I | 301 | - | 0.25 | 2.7 | - | 2.4 | 26 | |||||||||
| Inferred | 711 | - | 0.18 | 3.0 | - | 4.1 | 69 | |||||||||
| Filo del Sol Measured Silver Oxide Indicated | - 71 | - 0.36 | - 0.36 | - 119.7 | - 254 | - 0.8 | - 272 | |||||||||
| M&I | 71 | 0.36 | 0.36 | 119.7 | 254 | 0.8 | 272 | |||||||||
| Inferred | 95 | 0.08 | 0.14 | 35.1 | 75 | 0.4 | 108 | |||||||||
| Josemaria | Measured | 648 | 0.33 | 0.25 | 1.2 | 2,143 | 5.2 | 25 |
6 Based on rankings from S&P Global, including the Filo del Sol and Josemaria deposits.
961 0.25 0.15 1.1 2,436 4.5 33 Indicated
| M&I | 1,609 | 0.28 | 0.19 | 1.1 | 4,579 | 9.7 | 58 | |||||||||
| Inferred | 683 | 0.22 | 0.11 | 1.0 | 1,515 | 2.5 | 22 | |||||||||
| Vicuña Measured District Indicated | 648 3,533 | 0.33 0.34 | 0.25 0.27 | 1.2 6.2 | 2,143 12,195 | 5.2 30.9 | 25 704 | |||||||||
| M&I | 4,181 | 0.34 | 0.27 | 5.4 | 14,338 | 36.1 | 729 | |||||||||
| Inferred | 10,641 | 0.30 | 0.18 | 3.1 | 32,255 | 61.3 | 1,051 |
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported on a 100% basis, in situ Mineral Resources are not Reserves do not have demonstrated economic viability. The Project is a 50:50 joint arrangement between Lundin Mining and BHP Canada. Lundin Mining’s attributable interest in the Mineral Resource estimate is 50%.
3. The Qualified Person for the Filo del Sol estimates is Mr. Luke Evans, M.Sc., P.Eng., an SLR Consulting (Canada) Ltd. employee. The Qualified Person for the Josemaría estimate is Mr. Sean D. Horan, P.Geo., a Resource Modelling Solutions Ltd. employee.
4. Mineral Resource estimates for Filo del Sol were constrained within a pit shell with pit slope angles of up to 45o. Metal prices used were US$4.60/lb. copper, US$2,875/oz gold, and US$32.50/oz silver. Net smelter return (NSR) cut-off values and metallurgical recoveries varied by zone, and included:
- Gold Oxide: 73% gold; 63% silver recoveries with an NSR cut-off value of US$10.68/t;
- Copper and Silver Oxide: 67% copper, 63% gold, and 78% silver recoveries with an NSR cut-off value of US$16.58/t;
- Sulphide: 78% copper, 62% gold, and 62% silver recoveries with an NSR cut-off value of $9.84/t.
- Mining cost: $1.64/t (base cost at 4885 m) + incremental costs of $0.049/t/bench below and $0.031/t/bench above
- Processing cost: $7.78/t (gold oxide); $14.13/t (copper and silver oxides); $4.74/t (sulphide)
- Water cost: $2.19/t processed
- Tailing cost: $0.19/t processed
- G&A cost: $1.64/t processed
- Stockpile reclaiming cost: $0.79/t reclaimed
- ROM hauling cost: $0.36/t processed (gold oxide)
- Sustaining mining cost: $0.33/t mined
- Sustaining tailing & mill cost: $1.09/t processed
- Refining costs: $0.07/lb. (copper); $5.0/oz. (gold); $0.5/oz. (silver)
- Treatment costs: $70.0/dmt
- Royalties: 3.0% of gross payable revenue
5. Mineral Resource estimates for Josemaría were constrained within a pit shell with pit slope angles of up to 45 o. Metal prices used were US$4.60/lb. copper, US$2,875/oz gold, US$32.50/oz silver and an NSR cut-off value of US$9.59/t. Other inputs included average metallurgical recoveries of 82%, 60% and 56% for Cu, Au and Ag respectively
- Mining cost: $1.86/t (base cost at 4535 m) + incremental costs of $0.049/t/bench below and $0.031/t/bench above
- Water cost: $2.19/t processed
- Processing cost: $4.48/t processed
- Tailing cost: $0.19/t processed
- G&A cost: $1.64/t processed
- Sustaining mining cost: $0.33/t mined
- Sustaining tailing & mill cost: $1.09/t processed
- Refining costs: $0.07/lb. (copper); $5.0/oz. (gold); $0.5/oz. (silver)
- Treatment costs: $70.0/dmt
- Royalties: 3.0% of gross payable revenue
Figure 1. Longitudinal section through Filo del Sol Mineral Resource block model. Filo del Sol Mineral Resource has been defined over a total area of 10 square km, with an approximate surface area of 6.5 km by 1.5 km.
Figure 2. Cross section of the Filo del Sol deposit. Highlighting the high-grade core and the increase in Mineral Resource.
Mineral Resource Expansion
The updated Mineral Resource estimate for the Vicuña Project, effective October 31, 2025, reflects meaningful growth in the resource base, primarily at the Filo del Sol deposit. Changes relative to the previous estimate are driven mainly by new drilling at Filo del Sol, which supported both resource expansion and conversion to higher confidence categories, together with updated metal price assumptions and cut-off criteria applied in the PEA.
No new drilling was incorporated at Josemaría. Changes to the Josemaría Mineral Resource are attributable to updated metal prices and cut-off assumptions.
An ongoing drill program at Filo del Sol is focused on continued resource conversion, key mine-site condemnation drilling, and the collection of geotechnical and geometallurgical data to support ongoing technical studies.
Mining
Mining is to be carried out using conventional open pit techniques. The two deposits (Filo del Sol and Josemaria) will share a common fleet of 360 tonne haul trucks, electric rope shovels, hydraulic shovels, and large loaders. The mine design for both pits is based on 15 m benches (often double benching), with slope angles ranging from 33 to 45 degrees. Mining is planned to be done in several phases within the two deposits. In the conceptual mine plan, Josemaria is mined for the first 6 years targeting higher grade material to the mill during the earlier years and/or delaying waste stripping until later years. Mill feed grade averages 0.40% copper, 0.31 g/t gold and 1.41 g/t silver over the first 6 years (Josemaria deposit).
The initial mine life is 70 years with upside potential through regional exploration and identification of materialization along strike and to the east and west edges of the pit. The Company believes there are additional opportunities to further extend mine life by exploration.
Mine planning and scheduling were engineered to feed up to 64.0 Mt per year of Josemaria mineralization to the process plant. Upon commissioning of the Filo del Sol’s district leaching facilities, mining at Filo del Sol will commence, increasing the total mine movement at the Project to 300 Mt of material mined per year. Once Filo del Sol sulphide mineralization becomes higher grade than Josemaria, Josemaria mineralization will be deferred to the end of the mine life.
The Study outlines an average production profile of 400,000 tonnes of copper, 700,000 ounces of gold and 22 Moz of silver over a 25-year period with annual peak production estimates of 580,000 tonnes of copper per year, 1.1 Moz of gold per year and 56 Moz of silver per year.
Figure 3. Production profile by mineralization type
Table 5. Production Profile
| Year 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 - 2054 2055 - 2100 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Concentrator 36 55 64 64 64 64 64 64 96 107 107 107 107 107 107 1,070 4,674 Feed (Mt) | |||||||||||||||||
| Copper Grade (%) | 0.42% | 0.45% | 0.36% | 0.41% | 0.38% | 0.40% | 0.38% | 0.41% | 0.33% | 0.34% | 0.38% | 0.34% | 0.39% | 0.44% | 0.50% | 0.54% | 0.32% |
| Gold Grade (g/t) 0.4 0.4 0.3 0.3 0.3 0.2 0.3 0.3 0.4 0.3 0.3 0.3 0.3 0.3 0.4 0.3 0.2 | |||||||||||||||||
| Silver Grade (g/t) | 2.0 | 1.4 | 1.2 | 1.6 | 1.4 | 1.2 | 2.3 | 3.6 | 4.3 | 7.9 | 4.2 | 3.1 | 5.9 | 7.0 | 6.0 | 8.9 | 2.6 |
| Copper Recovery (%) 77% 81% 83% 85% 84% 83% 79% 80% 81% 82% 83% 82% 82% 84% 85% 85% 83% | |||||||||||||||||
| Gold Recovery (%) | 67% | 67% | 67% | 67% | 66% | 67% | 54% | 54% | 57% | 58% | 59% | 57% | 58% | 60% | 61% | 62% | 59% |
| Silver Recovery (%) 63% 63% 60% 63% 62% 64% 47% 48% 51% 53% 55% 52% 53% 57% 59% 59% 54% | |||||||||||||||||
| Copper Recovered (kt) | 115 | 200 | 195 | 223 | 204 | 213 | 191 | 207 | 255 | 296 | 334 | 294 | 342 | 392 | 455 | 4,899 | 12,445 |
| Gold Recovered (koz) 325 458 419 451 344 303 350 384 617 677 684 555 552 657 763 7,280 18,981 | |||||||||||||||||
| Silver Recovered (Moz) | 1.4 | 1.6 | 1.5 | 2.0 | 1.8 | 1.5 | 2.2 | 3.5 | 6.7 | 14.4 | 7.8 | 5.5 | 10.8 | 13.6 | 12.0 | 181.8 | 208.3 |
| Heap Leach - - 12 24 24 24 24 24 24 24 14 15 24 24 14 170 218 Feed (Mt) | |||||||||||||||||
| Copper Grade (%) | - | - | 0.26% | 0.29% | 0.45% | 0.44% | 0.34% | 0.41% | 0.32% | 0.20% | 0.35% | 0.30% | 0.06% | 0.18% | 0.21% | 0.19% | 0.22% |
| Gold Grade (g/t) - - 0.5 0.5 0.3 0.3 0.3 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.2 | |||||||||||||||||
| Silver Grade (g/t) | - | - | 6.4 | 17.6 | 26.9 | 87.3 | 41.9 | 63.5 | 28.9 | 32.7 | 4.6 | 3.2 | 76.1 | 17.1 | 13.5 | 5.2 | 5.1 |
| Copper Cathode - - 69% 71% 72% 67% 52% 60% 58% 57% 67% 61% 22% 47% 53% 44% 48% Recovery (%) | |||||||||||||||||
| Gold Recovery (%) | - | - | 53% | 55% | 55% | 55% | 56% | 57% | 56% | 55% | 63% | 62% | 54% | 54% | 63% | 58% | 58% |
| Silver Recovery (%) - - 73% 75% 75% 77% 77% 77% 76% 75% 78% 76% 77% 73% 78% 70% 65% | |||||||||||||||||
| Copper Recovered (kt) | - | - | 23 | 53 | 84 | 78 | 52 | 68 | 52 | 32 | 36 | 31 | 6 | 25 | 18 | 178 | 281 |
| Gold Recovered (koz) - - 111 193 135 129 143 171 167 152 84 84 135 120 63 734 975 | |||||||||||||||||
| Silver Recovered (Moz) | - | - | 1.8 | 10.1 | 15.6 | 52.0 | 24.8 | 37.7 | 17.0 | 19.0 | 1.6 | 1.1 | 45.1 | 9.4 | 4.7 | 20.4 | 25.7 |
| Total Copper Recovered (kt) 115 200 218 276 287 291 244 276 307 329 370 325 347 417 473 5,077 12,726 | |||||||||||||||||
| Total Gold Recovered (koz) | 325 | 458 | 531 | 643 | 479 | 432 | 494 | 555 | 784 | 829 | 768 | 639 | 687 | 778 | 825 | 8,014 | 19,956 |
Total Silver Recovered (Moz)
1.4 1.6 3.3 12.2 17.4 53.6 27.0 41.2 23.7 33.4 9.4 6.7 55.8 23.0 16.7 202.1 234.0
Tonnages are rounded to the nearest 1,000 tonnes, metal grades are rounded to two decimal places. Tonnage and grade measurements are in metric units; contained gold and silver are reported as thousands of troy ounces.
Processing
Sulphide Mineralization
The process plant design is developed on conventional industry standard unit operations. Run-of-mine mineralization will be processed through crushing and grinding, followed by three stage flotation to produce a gold-rich copper concentrate. Initial installed capacity is anticipated to be 175,000 tonnes per day, the processing plant is expected to be expanded to 293,000 tonnes per day with the development of the Filo del Sol deposit. At this time Josemaria mineralization will be largely deferred to the end of the mine life and the concentrator will be fed primarily from the Filo del Sol deposit.
Run-of-mine material will be delivered from the open pit to two gyratory crushers with crushed material transported via conveyor to a covered coarse stockpile. Material will be reclaimed from the coarse stockpile and conveyed to three parallel SAG mill/Ball mill circuits. Ball mill cyclone overflow feed will feed the copper flotation process which will have a target P80 of approximately 130 µm. Conventional copper rougher flotation, followed by concentrate re-grinding and copper cleaner flotation, will result in the production of a copper concentrate with a copper grade of approximately 27%. The final concentrate will be thickened and filtered, ready for shipment by truck to a port in Chile.
Extensive metallurgical testing of mineralization at Josemaria has been conducted with prior studies. Testwork focused on the initial five years of mineralization to be processed. The program focused on metallurgical recovery, crushing, grinding, flotation, and liquid-solid separation and included testing of five lithological composites, variability samples and four annual composites. Furthermore, a large sample representing mineralization from the oxide to fresh boundary, indicative of the early years of mining, was tested in a pilot plant to improve confidence and confirm bench scale assumptions.
At Filo del Sol, additional metallurgical testing programs were carried out as part of the Study to support the development of the flowsheet. The additional testing primarily focused on the different lithologies and composite samples at Filo del Sol to test variability and characterization of mineralization zones, grind size and leach extraction. Based on recent and historical metallurgical test work, recovery equations were generated and applied at the block level. These equations estimated overall average recoveries in the prospective LOM as 83.4% for copper, 59.5% for gold and 55.8% for silver.
Oxide Mineralization
Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry coppergold system. Overlapping mineralizing events combined with weathering effects, including supergene enrichment, have created several different styles of mineralization, including copper-gold oxide (CuAuOx), copper oxide (CuOx) and gold oxide (AuOx). These three main domains are based primarily on mineralogy and have different metallurgical characteristics.
Stage 2 introduces leaching facilities at the Filo del Sol site, targeting a heap leaching capacity of up to 90,000 tpd (all mineralization types). Facilities are designed for two main mineralization types (blended material and gold rich material), with distinct processing streams.
A target of 60,000 tpd of blended mineralization will undergo crushing and scrubbing to remove sulfate minerals prior to copper oxide recovery by leaching on an on/off heap leach pad. Primary crushed material will be transported via a series of surface conveyors and mobile stacking equipment to the various leach pads. Following copper extraction, the processed material will be reclaimed and transferred to the permanent gold heap leach pad for subsequent gold and silver recovery.
In parallel, 30,000 tpd of run-of-mine AuOx mineralization will be transported directly to the gold dump leach pad, where conventional gold leaching will facilitate gold and silver extraction.
The Study contemplates conventional open pit mining methods. The oxide material will have a mine life of 35 years with a maximum mining rate of 72 Mt per year. A total of approximately 658 Mt of leach material is expected to be processed over the life of the mine
The pregnant leach solution (PLS) derived from the on/off pad, together with effluent from the acid-washing circuit, will be pumped to the Solvent Extraction and Electrowinning (SX/EW) plant for the production of highpurity copper cathodes. Leach solutions from the gold heap leach and dump leach pads will be directed to the Merrill-Crowe plant, where gold and silver will be recovered via cementation on zinc dust before proceeding to retorting and smelting, resulting in doré production.
Filo del Sol Sulphide Mineralization
Stage 3 involves the processing of Filo del Sol sulphide mineralization through an upgrade and expansion to the concentrator. Filo del Sol sulphide mineralization is mined, crushed, and transported via a 12 km overland conveyor system, which includes two tunnels measuring 3.8 km and 2.5 km, before arriving at the concentrator for processing.
In Stage 3, the existing three-line concentrator configuration is adapted and expanded to five lines to accommodate Filo del Sol sulphide mineralization, significantly increasing capacity for coarse material stockpiling, grinding, flotation, regrinding, concentrate thickening, and tailings management. This expansion targets a combined throughput of 293,000 tonnes per day, facilitating the integrated processing of both Josemaria and Filo del Sol materials throughout the life-of-mine plan.
The enhanced facility offers greater operational flexibility by enabling simultaneous, yet independent, processing of Josemaria and Filo del Sol mineralization streams through parallel workflows. To address the unique properties of each resource, additional process equipment has been incorporated, including pebble crushers and extended regrind capabilities.
Tailings Management
Sulphide tailings generated at the process plant will be segregated into rougher and cleaner tailings streams and discharged via pipelines to a tailings storage facility (TSF) for permanent storage. Thickened slurry tailings will be managed at four main TSFs and progressively developed throughout the mine operating life.
All TSF dams are designed as zoned earthfill/rockfill embankments and will be raised using the downstream construction method. Runoff will be managed within each TSF and reclaimed to the process plant throughout the mine life.
Capital & Operating Costs
For Stage 1, the Study contemplates a 40-month capital development and construction timeline that includes a 6-month commissioning period. Total initial capital cost for Stage 1 is estimated at $7.1 billion and $18.1 billion for stages 1-3. LOM sustaining capital is estimated at $30.3 billion over 70 years for all stages, including closure costs.
The Study outlines a comprehensive development plan for Stage 1, encompassing construction of the concentrator and development of the Josemaria mine. The capital estimates and operating cost estimates are established from first principles.
For Stage 1 estimates were completed to a class 3, contingency has been applied to the estimate on an area and discipline basis, variances ranged from -15% to +20% depending on the area and level of quotation. The Stages 2 and 3 estimate are completed to a class 5 and variances range from -35% to +50%.
Table 6. Vicuña Capital Cost Estimate
| Item | Stage 1 Capital ($B) | Stage 2 Capital ($B) | Stage 3 Capital ($B) | |||
|---|---|---|---|---|---|---|
| Mine | 1.0 | 0.3 | 0.8 | |||
| Crushing and Processing | 1.1 | 1.2 | 2.4 | |||
| Tailings Management | 0.2 | 0 | 0.1 | |||
| On-Site Infrastructure | 0.5 | 0.5 | 0.1 | |||
| Off-Site Infrastructure | 0.8 | 0.0 | 0.3 | |||
| Subtotal Direct Costs | 3.7 | 2.1 | 3.8 | |||
| Indirect Costs | 2.0 | 1.0 | 1.8 | |||
| Subtotal Direct and Indirect | 5.6 | 3.1 | 5.6 | |||
| Owner’s Costs | 0.5 | 0.1 | 0.1 | |||
| Contingency | 0.9 | 0.7 | 1.4 | |||
| Total | 7.1 | 3.9 | 7.1 |
Table 7. Vicuña Cash Cost and AISC
| Costs | Initial 25 Years ($B) | LOM ($B) | ||
|---|---|---|---|---|
| Mining | $11.4 | $37.3 | ||
| Processing – Concentrator | $20.5 | $54.2 | ||
| Processing – SXEW | $5.5 | $7.8 | ||
| Site Services and water | $16.7 | $32.0 | ||
| Concentrate Freight | $3.4 | $5.8 | ||
| G&A | $4.3 | $12.2 | ||
| Amortization | $0.6 | $1.3 | ||
| Realization Costs | $4.5 | $10.4 | ||
| Royalties | $6.5 | $20.8 | ||
| By-product Credits | ($77.7) | ($146.8) | ||
| Total Cash Costs | ($4.3) | $35.1 | ||
| Cash Cost per pound sold | ($0.20)/lb | $0.74/lb | ||
| Sustaining capital including capitalized stripping and closure capital | $14.3 | $30.3 | ||
| Total AISC | $10.0 | $65.4 | ||
| AISC per pound sold | $0.47/lb | $1.38/lb |
Cash cost per pound sold, operating costs per tonne processed, and AISC per pound sold are non-GAAP financial measures, and sustaining capital expenditure is a supplementary financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures”.
Infrastructure
On-site infrastructure includes a road network, processing plant, mine support facilities, power and water supply and distribution, camp facilities and water and sewage treatment facilities. The site infrastructure layout has been designed to provide a relatively direct flow of material from mine to tailings storage. The plant facilities were arranged to minimize civil earthwork and locate major equipment in areas with favourable geotechnical characteristics while maximizing gravity-assisted material flow where possible.
Permanent site access will be provided via an upgraded 220 km access road (Northern Access Road) from the town of Angualasto (San Juan Province), located approximately 206 km northwest of San Juan City on Ruta Nacional 150. The current access route from San Juan, via the town of Guandacol in the La Rioja Province, will be maintained for construction traffic until the Northern Access Road is complete.
Water Supply and Distribution
Groundwater sources will be developed to provide fresh water supply to the plant site and ancillary facilities during Stage 1 and Stage 2. Three groundwater well field locations have been identified for the supply of fresh water.
Water from the well fields will be pumped to a freshwater pond adjacent to the plant site. The freshwater will be distributed throughout the site from storage tanks, which will maintain dedicated firewater reserves for the fire protection system.
The long-term water supply is expected to be augmented by a desalinated seawater system from Chile (see below).
Power
During Stage 1, electrical power for the Vicuña Project will be supplied from the Argentine national grid via an interconnection point located near the town of Rodeo. A new 500 kV transmission line will extend 167 km north to the newly established Chaparro Substation, where the transmission voltage will transition from 500 kV (singlecircuit) to 220 kV (double-circuit). A 220 kV double-circuit transmission line will then continue from Chaparro to the main Josemaria Substation. This infrastructure is designed to support the load requirements for both Stage 1 and Stage 2 (a combined total of 380 MW).
To meet the ultimate power demand for all phases (approximately 738 MW), the Project will require expansion of the Chaparro Substation, installation of a second transformer bank, additional reactive-power compensation at Chaparro, a new 220 kV Chaparro–Josemaria transmission line, and construction of a new 500 kV Chaparro– La Rioja Sur transmission line, accompanied by the requisite upgrades at the La Rioja Sur Substation. This expansion scope is anticipated to be constructed to support the Stage 3 Filo del Sol sulphides and mill expansion.
Concentrate Treatment
The copper concentrate recovered from the Filo del Sol pit is anticipated to have elevated arsenic content, necessitating its removal to enhance suitability for smelter processing. Accordingly, a copper concentrate roasting plant is proposed to support the Stage 3 Filo del Sol sulphides and mill expansion. The plant will be designed to process 1.3 Mt of concentrate annually, utilizing two independent lines to meet production requirements. The roasting operation is projected to produce a marketable calcine.
Concentrate Transportation
The concentrate transportation system will initially involve the trucking of concentrate using rotainers under a logistics contract from the Stage 1 Josemaria mine site to a Chilean port. This route will utilize the Northern Access Road and subsequently public highways across both Argentina and Chile. Upon arrival, the concentrate will be stored and then loaded onto ocean-going vessels for export to global smelting facilities.
To accommodate the increased throughput associated with the Stage 3 Filo del Sol sulphides and mill expansion, a new concentrate pipeline and the associated pumping system will be installed to link the concentrator with the designated roaster.
Desalination Plant & Pipeline
Water supply for Stage 1 is expected to be sourced from the wellfields previously described. To accommodate the Stage 3 Filo del Sol mine expansion and mill expansion, a desalinated seawater system has been proposed along the Chilean coast, engineered to deliver 2,000 L/s to the Vicuña Project. This initiative includes the development of a dedicated seawater intake, a desalination facility, and a pipeline extending across mountainous terrain to the freshwater pond at the mill site. If makeup water requirements surpass the pipeline’s 2,000 L/s capacity, supplemental supply from wellfields will be available to ensure consistent reliability during dry years.