Whittle Consulting will get paid partly in Oroco Resource Corp shares for a strategic study on its proposed US$1 billion-plus Santo Tomas porphyry copper project in Mexico.
Australian firm Whittle says it will use its proprietary software to holistically probe optimisation options for Santo Tomas, the focus of an August 2024 updated preliminary economic assessment (PEA) which used a 22-year mine production plan with more than 825 million tonnes of 0.37% copper-equivalent plant feed.
“A staged approach to the mine expansion and a focus on exploiting the higher-grade near-surface material in the early years of mining has unlocked a considerable increase in value,” Oroco CEO John Lock said at the time of the updated PEA. “We have established a plan that invokes a very efficient use of capital.”
Now, though, Whittle aims to examine “innovative operating strategies and technologies that have the potential to enhance the project’s value”.
“The [Whittle] study will employ advanced cost modelling and system constraint analysis to optimise all facets of the Santo Tomas mining process, including an expanded North Zone mine plan,” the firm said.
It would collaborate with Oroco’s team to evaluate alternative power sources, mining fleet electrification, different processing technologies and tailings storage options.
“These analyses will refine pit size, stripping ratios and cut-off grades, providing critical guidance for the upcoming pre-feasibility study by identifying optimal operational structures and technologies for further evaluation,” Oroco said.
“Whittle’s proven track record, with over 120 enterprise optimisation studies, demonstrates its ability to significantly improve project economics through its proprietary Prober-F software. This advanced tool integrates linear programming with a sophisticated search algorithm, utilising over 300 computer cores to tackle complex, multi-variable mining challenges.”
Whittle’s receipt of 60% of its consulting fee in Oroco shares is subject to TSX Venture Exchange approval.
Oroco’s share price is down about 15% in the past month, capitalising the company at C$76 million.
Its 2024 Santo Tomas PEA put a circa-US$1.5 billion net present value (NPV) on the project.
