Halo Minerals (AIM:HALO) said a Class 3 engineering and cost update for its Playa Verde project in Chile puts capital costs at approximately $92.8 million, excluding VAT.
The AIM-listed company recovers copper and gold from legacy mining tailings rather than through primary hard-rock mining, and Playa Verde in the Chañaral district is its principal asset, built on a JORC resource of 53 million tonnes at 0.24% copper.
The update, prepared with BIOS Mining & Infrastructure, carries an estimated accuracy range of -10%/+15% and marks a step toward a final investment decision, project financing and construction.
It envisages processing approximately 5 million tonnes of material a year, yielding around 8,640 tonnes of recovered copper and 1,400 ounces of gold annually over an initial seven-year operating life, with an estimated operating cost of approximately $2.20 per pound of recovered copper.
The capital estimate represents only a 3.5% increase over the 2016 feasibility study case despite a decade of cost inflation, and Halo flagged a value-engineering opportunity that could cut capital costs by a further $6 million to $10 million if validated during detailed engineering.
"Completion of the BIOS MI Class 3 engineering and cost update represents an important step in converting Playa Verde from an advanced technical project into a financing and construction proposition," said chief executive Andrew Dennan.
The company reported a pre-tax loss of £2.9 million for the six months to 30 June, a period covering its AIM admission and a £4 million gross fundraise, and said it is now debt-free.
Halo is targeting a final investment decision by the end of 2026, with study planning assumptions supporting a potential October 2028 operational start-up.