Eva copper project : Harmony Gold Mining strikes $230m deal with Copper Mountain Mining

Harmony Gold Mining Company has signed an agreement to acquire the Eva copper project in Australia alongside a package of regional exploration tenements from Copper Mountain Mining for $170 million plus contingent payments of up to $60 million.

Located within the world-class North West Minerals Province in Queensland the Eva copper mine and the tenements to be acquired consist of 2,295km2 of tenure.

The acquisition will diversify the presence of Harmony Gold Mining Company into copper, a metal critical to the energy transition.

The Eva copper mine is expected to add 1.718 billion pounds of copper and 260 000 ounces of gold to the mineral reserves of the South African mining company.

Harmony Gold Mining strikes $230m deal with Copper Mountain Mining to acquire Eva copper project. Photo courtesy of horjaraul from Pixabay.

Peter Steenkamp — Harmony Gold Mining Company CEO, commenting on the Eva copper project, said: “Acquiring Eva Copper is strategically important to our growth journey. It opens a new copper-gold frontier for Harmony within a highly attractive Australian mining area, supplementing our 50% interest in the Tier 1 copper-gold Wafi-Golpu project.

“Eva Copper lowers our risk profile, providing additional scale and meaningful diversification that positions Harmony for the future.”

The benefits provided by the Eva copper project include a short construction period of two to three years, a quick ramp-up to full production, and supporting infrastructure, said Harmony Gold Mining Company.

Eva copper project CAPEX

According to the studies conducted by Copper Mountain Mining, the copper project in Queensland is estimated to require development capital of $597 million.

It will be a conventional open pit with a conventional crush, grind, and flotation circuit.

The Eva Copper project has a mineral resource base, including the inferred resource, of 307 million tonnes (Mt) at 0.42% Cu, 0.04g/t Au for 2.85 billion pounds contained copper and 381koz Au.

It has a mineral reserve of 171 Mt grading 0.46% Cu and 0.05 g/t Au for 1.718 billion pounds contained copper, and 260k oz contained gold.

Commenting on the Eva copper project, Gil Clausen — Copper Mountain Mining President and CEO said: “We are pleased with this transaction as it demonstrates the value the Company has developed in the Eva Copper Project since our acquisition of Altona Mining Limited in 2018. It also recognizes the exploration upside that exists on the surrounding prospective land package.”