Doré Copper Announces Positive Preliminary Economic Assessment FOR Restarting Chibougamau Mining CAMP
PRESS RELEASE
DORÉ COPPER ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT
FOR RESTARTING CHIBOUGAMAU MINING CAMP
Toronto, Ontario – May 10, 2022 – Doré Copper Mining Corp. (the " Corporation" or " Doré Copper")
(TSXV: DCMC; OTCQ X: DRCMF; FRA: DCM) is pleased to report positive results from its Preliminary
Economic Assessment (“PEA“) for the restart of the Chibougamau mining camp. The PEA supports a hub-
and-spoke operation with the high-grade Corner Bay copper-gold deposit as its main underground mine
along with the Devlin copper deposit and the former Joe Mann gold mine providing feed to its Copper Rand
mill (collectively, the ”Project”) . The PEA demonstrates attractive project economics with optionality for
expansion into a significantly larger operation, re-establishing the Chibougamau mining camp as a long-life
copper and gold producer.
All values in this news release are reported in Canadian dollars (C$) unless otherwise noted.
Doré Copper will be hosting a webinar to review the PEA results on Tuesday, May 10 at 10:00AM EST:
https://us06web.zoom.us/webinar/register/WN_yaoTJLNPTcGccp-PlAceIA
PEA Highlights
• Attractive project economics:
o Base case metal prices of US$3.75/lb Cu and US$1,820/oz Au:
Pre-tax NPV8% of C$367 million and 30.7% IRR
After-tax NPV8% of C$193 million and 22.1% IRR
o Spot metal prices of US$4.20/lb Cu and US$1,854/oz Au:
Pre-tax NPV8% of C$555 million and 40.1% IRR
After-tax NPV8% of C$303 million and 29.4% IRR
• Mine life of 10.5 years: Metal production of 492 Mlbs Cu, 142,000 oz Au
• Average cash operating costs of US$1.35/lb CuEq and all-in sustaining costs of US$2.24/lb CuEq
• Light capital intensity: Initial capital of C$180.6 million (including C$24 million contingency), translating
to a Tier 1 Capital Intensity Index (initial capital / annual CuEq produced) of US$2.64/lb CuEq or
US$0.25/lb CuEq LOM
• Scalable operation: Mill has 25% excess grinding capacity (over the maximum annual throughput)
providing opportunities to add, discover, or acquire other properties in the Chibougamau mining camp
• Long life tailings storage option with minimal environmental impact: Implementation of dry stack
tailings and ore sorting technology provides for a maximum cap acity of 12 Mt on the existing Copper
Rand tailings management facility (“TMF”)
• Modernization of the mill and TMF: PEA study modernizes the existing Copper Rand mill and TMF
so that they are productive and cost efficient and minimizes impact on the environment
• Opportunities for mine life extension: Corner Bay and Joe Mann deposits remain open at depth with
strong potential to add additional resources and extend the mine life. Potential for additional mill feed
during mine life with the advancement of its exploration projects in Chibougamau mining ca mp.
Ernest Mast, President and CEO commented, “The completion of the PEA is a major accomplishment from
our team and gets us closer to our near-term objective of restarting the Chibougamau mining camp. This
achievement has come with the excellent exploration results from Corner Bay over the last few years where
we have been able to significantly grow the mineral resources. The PEA represents today’s status of the
projects but we envision scaled expansions and future growth at both Cor ner Bay and Joe Mann while
eventually sequencing in other deposits across our large land package in the Chibougamau mining camp.
With three projects in the PEA, the average annual production over the mine life is approximately 50 Mlbs
2
of copper equivalent , with a high of 90 Mlbs of copper equivalent . Our vision is to operate a viable
sustainable hub-and-spoke operation over multi-decades to become a significant copper producer in
Québec.”
“Our next steps include commencing a feasibility study and submitting permit application with the provincial
government. We look forward to working with Ouje-Bougoumou Cree Nation and the towns of
Chibougamau and Chapais with the support of the government to advance the restart of the Chibougamau
mining camp.”
PEA Study Approach
The PEA envisions a hub-and-spoke model operation starting first with the underground development of
the Devlin deposit via a ramp and secondly with the underground development of the Corner Bay deposit
(main asset) via a ramp. Once the Devlin deposit is mined out (approximately 4 years), production at the
Joe Mann mine would start and be funded out of cash flow from operations. Joe Mann benefits from an
existing headframe and shaft, including all surface infrastructures.
A fixed crushing circuit and ore sorter plant (XRT) would be installed at Corner Bay and would reject the
low-grade and dilution material from the Devlin and Corner Bay mines. The high-grade material would be
transported by trucks to the refurbished and optimized Copper Rand mill. The filtered tailings would be
transported to a dry stack tailings facility, which uses part of the footprint at the existing TMF.
The copper and gold concentrate produced would be transported to the port of Québec City for onward
shipping to international smelters, or to a local smelter. Ocean Partners Ltd. has the off -take agreement
(treatment and refining charges terms are within standard market rates).
Table 1: PEA Summary of Key Metrics
Description Unit Base Case1
24-month Trailing Avg
Spot Prices
May 9, 2022
Metal Prices/FX
Copper (Cu) US$/lb 3.75 4.20
Gold (Au) US$/oz 1,820 1,854
Currency Exchange Rate USD/CAD 1.28 1.30
Production Data
Resource Tonnes T 9,150,710 9,150,710
Copper Equiv. Grade % 2.98 2.98
Daily Mill Throughput Tpd 1,350 1,350
Annual Processing Rate Ktpa 490 490
Mine Life Years 10.5 10.5
Avg Annual Production
(in concentrate) Mlbs CuEq 53 53
Operating Costs (LOM avg)
Total Operating Costs2 C$/t mined 106 106
C$/t milled 186 186
All-in Sustaining Costs3,4 US$/lb CuEq 2.24 2.24
Capital Costs5
Initial Capital C$M 180.6 180.6
LOM Sustaining Capex C$M 402.4 402.4
Financial Analysis (unlevered)
Pre-Tax NPV 8% C$M 367 555
Pre-Tax IRR % 30.7 40.1
After-Tax NPV 8% C$M 193 303
After-Tax IRR % 22.1 29.4
Payback Period (Production Start) years 5.5 4.2
1. Base case metal prices based on 24-month trailing average from March 31, 2022.
2. Total operating costs include mining, processing, tailings, surface infrastructures, transport, and G&A costs. See
Table 3.
3
3. AISC includes cash operating costs, sustaining capital expenses to support the on-going operations, concentrate
transport and treatment charges, royalties and closure and rehabilitation costs divided by copper equivalent
pounds produced. See Table 3.
4. AISC is a non-IFRS financial performance measures with no standardized definition under IFRS. Refer to note at
end of this news release.
5. See Table 2.
Capital Cost
The PEA for the Project outlines an initial (pre-production) capital cost estimate of C$180.6 million and
sustaining capital costs over the life of mine (“LOM”) of C$402.4 million, which includes the capital to restart
Joe Mann and overall closure costs of C$53.6 million. Initial underground capital costs include the
rehabilitation of the portals at Corner Bay and Devlin, facilities for water capture and treatment at both
locations, construction of a powerline (16 km, 34 kV powerline to Corner Bay, and 3.25 km, 34 kV powerline
to Devlin), a crushing circuit and ore sorter at Corner Bay, improvements to existing roads and 4 km of new
roads connecting Corner Bay and Devlin, a new feed material reception and mill feed conveyor, ball milling
and gravity circuit, rehabilitated flotation and concentrate filtration circuit and new tailings filtration circuit at
the mill, and preparation of an area on the existing TMF for the placement of filtered tailings and a water
treatment facility.
Table 2: Capex Estimates
Cost Element Initial Capital (C$M)1 Sustaining Capital (C$M)1,3
Mine Costs
Corner Bay 14.8 247.3
Devlin 7.0 0.4
Joe Mann2 0.0 51.9
Processing (including Ore Sorting) 54.2 1.1
Infrastructure 34.5 15.5
Tailings 13.8 16.7
EPCM and Indirect Costs4 22.8 5.5
Owner’s Costs4 9.9 3.1
Subtotal Capex $157.1 $341.6
Contingency5 23.6 7.2
Reclamation and Closure 0.0 53.6
Total Capex $180.6 $402.4
1. All values stated are undiscounted. No inflation or depreciation of costs were applied.
2. Contingency, owner’s costs, EPCM and indirect costs on Joe Mann’s initial capital also included in the
sustaining capital.
3. Sustaining capital does not include salvage values, estimated at C$17 M for all sites.
4. Includes owner’s costs of 8%, construction indirects of 10%, and EPCM of 12% for mill and tailings and 4% for
mining of direct costs.
5. Includes contingency of 15% for all initial capital, owner’s costs, construction indirects, and EPCM.
Operating Costs
Operating costs estimates were developed using first principles methodology, vendor quotes received from
Q4 2021 to Q1 2022, and productivities being derived from benchmarking and industry best practices. Over
the LOM, the average operating cost for the Project is estimated at C$106/t mined and C$186/t milled.
The average cash operating costs over the LOM is US$1.35/lb CuEq and the average AISC is US$2.24 /lb
CuEq.
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Table 3: Operating Cost Summary
Average LOM
Mining C$61/t mined / C$108/t milled
Processing (including Ore Sorting) C$32/t milled
Tailings1 C$7/t milled
Infrastructure and Transport
G&A
C$28/t milled
C$12/t milled
Total operating costs C$186/t milled
Cash operating costs 2,4,5 US$1.35 /lb CuEq
All-in sustaining costs 3,4,5 US$2.24 /lb CuEq
1. Tailings filtration costs are in processing costs.
2. Cash operating cost includes mining, processing, tailings, surface infrastructures, transport, and G&A to the point
of production of the concentrate at the Copper Rand site divided by copper equivalent pounds produced . It
excludes off -site concentrate costs, sustaining capital expenses, closure/rehabilitation and roy alties. CuEq
calculation assumes metal base case prices.
3. AISC includes cash operating costs, sustaining capital expenses to support the on-going operations, concentrate
transport and treatment charges, royalties and closure and rehabilitation costs divided copper equivalent pounds
produced.
4. Copper equivalent (CuEq) costs uses only payable gold in concentrate and is applied as a credit against costs.
5. Cash operating cost and AISC are non-IFRS financial performance measures with no standardized definition
under IFRS. Refer to note at end of this news release.
6. Numbers may not add up due to rounding.
Economic Analysis and Sensitivities
The PEA indicates that the potential economic returns from the Project justify its further evaluation by
advancing to a feasibility study.
Table 4: Summary of Economic Analysis1,2
Base Case
Metal Price Assumptions (US$) $3.75/lb Cu, $1,820/oz Au
Exchange Rate (USD/CAD) 1.28
Pre-tax After-tax
NPV (8% discount) C$366 M C$193 M
IRR 30.7% 22.1%
Payback Period 4.2 yrs 5.5 yrs
EBITDA C$1,313 M C$1,313 M
LOM Undiscounted Net Cash Flow C$747 M C$455 M
1. The analysis assumes that the Project is 100% equity financed (unlevered).
2. Appropriate deductions are applied to the concentrate produced, including treatment, refining, transport and
insurance costs.
The Project generates cumulative cash flow of C$455 million on an after-tax basis and C$747 million pre-
tax at a base case of $3. 75/lb Cu based on a n average mill throughput of 1,350 tpd over 10.5 years. The
2% net smelter return ( “NSR”) royalty over the Joe Mann mine, and the 15% net operating profits interest
(NPI) royalty and the 2% NSR on the gross value of the mineral products exceeding US$60 million over
Devlin have been applied to the cash flow model for a total of C$13.3 million undiscounted.
The PEA economic analysis is significantly influenced by copper prices. At spot metal prices of US$4.20/lb
Cu and US$1,854/oz Au, the Project generates an after -tax Net Present Value (“NPV”) using an 8%
discount rate of $303 million and an after-tax IRR of 29.4% with a payback period of 4.2 years from the
commencement of production. Outlined below in Table 5 is a detailed sensitivity analysis across various
commodity prices.
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Table 5: Sensitivity Analysis
Copper Prices (US$/lb)
3.40
Base Case
3.75
4.10
Spot
4.20
Gold Prices (US$/oz) 1,650 1,820 1,820 1,854
Pre-tax NPV (8% discount) (C$M) 228 367 494 555
After-tax NPV (8% discount) (C$M) 107 193 269 303
Pre-tax IRR (%) 23.2 30.7 37.2 40.1
After-tax IRR (%) 16.1 22.1 27.2 29.4
Opportunities
• Add Corner Bay’s silver and molybdenum content (currently excluded for mineral resources)
• Potential to extend mine life by expanding mineral resources at both Corner Bay and Joe Mann once
operation starts
• Surplus grinding capacity at the Copper Rand mill
• Underpins potential for low-cost organic production growth (other nearby assets, including Cedar Bay
and Copper Rand) to be evaluated during LOM)
• Potential to increase Corner Bay and Devlin concentrate grades which would decrease treatment
charges and shipping costs
• Potential labour cost savings by self-performance for various mill rehabilitation activities
• Potential to install a 25 kV line from the Québec grid to Corner Bay (PEA design has a 34 kV line)
• Potential for a carbon neutral operation with PEA design to utilize power from the Qu ébec grid,
minimizing trucked material with ore sorting technology and implement ing trolley-assist hauling
technology at the Corner Bay mine site. In the feasibility study, the Corporation will attempt to be carbon
neutral by the end of Devlin’s mine life (approximately 4 years).
Mineral Resources
The basis for the PEA uses an updated mineral resource estimate for the Corner Bay deposit (effective
date March 30, 2022) and previously published MRE for Devlin and Joe Mann , respectively October and
July 2021 , restated with an updated effective date of March 30, 2022. The PEA reports on mineral
resources, not mineral reserves.
Table 6: Mineral Resource Estimates
Deposit Category Tonnage Grade Contained
000 tonnes % Cu g/t Au M lbs Cu 000 oz Au
Corner Bay Indicated 2,675 2.66 0.26 157 22
Inferred 5,829 3.44 0.27 442 51
Devlin Measured 121 2.74 0.29 7.3 1
Indicated 654 2.06 0.19 29.7 4
Measured &
Indicated
775 2.17 0.20 37.0 5
Inferred 484 1.79 0.17 19.2 3
Joe Mann Inferred 608 0.24 6.78 3.3 133
Total Measured &
Indicated
3,450 2.55 0.25 194.0 27
Total Inferred 6,921 3.04 0.83 464.5 187
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. The effective date of the Mineral Resources is March 30, 2022.
3. Mineral Resources are estimated using an exchange rate of US$0.75/C$1.00.
4. Mineral Resources at Joe Mann are estimated using a long-term gold price of US$1,800/oz Au, and a metallurgical
gold recovery of 83%. Mineral Resources at Corner Bay and Devlin are estimated using a long -term copper price
of US$3.75/lb, and a metallurgical copper recovery of 95%.
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5. Mineral Resources are estimated at a cut-off grade of 2.60 g/t Au at Joe Mann, 1.3% Cu at Corner Bay and 1.2%
Cu at Devlin.
6. A minimum mining width of 1.2 m was used at Joe Mann and a small number of lower grade blocks have been
included for continuity. A minimum mining width of 2.0 m was used at Corner Bay, and a minimum height of 1.8 m
was applied at Devlin.
7. Bulk density ranges by deposit and vein from 2.84 t/m3 to 3.1 t/m3.
8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
9. Numbers may not add up due to rounding.
Mining
Projected mined tonnes from the Project (Corner Bay, Devlin and Joe Mann) are expected to total 9.15 Mt,
ramping up to a maximum capacity of 3,000 tpd over a mine life of 10.5 years.
Figure 1: Annual Mining Rates (tpd)
Corner Bay Mine
Underground mining at Corner Bay would use the existing single portal and two kilometers of development
to three levels down to 115 meters. The development would extend the decline ramps to a depth of 1,326
meters. Most of the material would be mined by longhole open stopi ng with pillars then backfilled and
AVOCA, a longitudinal longhole retreat mining method. A fleet of nine battery electric haul trucks with trolley
assist and six loaders w ould be required at maximum capacity. Trade off studies were completed to
evaluate between a shaft, 42 tonne battery electric trucks with BaaS (Battery as a Service) technology and
50 tonne diesel trucks and it was concluded that the use of 42 tonne battery el ectric trucks w as the best
economic option. In addition, the electric truck technology will provide benefits related to less ventilation
requirements, better air quality and lower diesel consumption.
The mined material would be transported to surface and crushed at site with an integrated XRT (X-ray
transmission) ore sorting circuit. Test work on material selected from the development mineralized material
stockpiled at surface, which was extracted during the preparation of the 2008 bulk sample , indicated that
the average grade of the mineralized material is upgraded 1.54 times and 47% of the crushed mined
material would be rejected. The high-grade material pre-concentrate would be transported by trucks to the
Copper Rand mill located approximately 47 km from the mine site.
Total projected mined tonnes from Corner Bay are expected to be 7.60 Mt ramping up to a maximum
capacity of 2,600 tpd over a mine life of 10.5 years.
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Devlin Mine
Access to the shallow Devlin deposit would require the enlargement of the existing decline ramp (305
meters) and existing drifts (364 meters). Underground mining would use a combination of room and pillar
and drift and fill mining methods. Devlin will produce 951 ,000 tonnes of material over a mine life of four
years and reach a maximum mining rate of 760 tpd. Mining and surface activities at Devlin will be done by
a contractor.
The mined tonnes would be trucked 15.6 km to the Corner Bay site for crushing and sorting in combination
with the Corner Bay mined tonnes. With the mineralized material having a thickness of 1 to 2 meters and
the wall rock being essentially barren, ore sorting technology is expected to work well. Preliminary test work
on core from drilling simulating a 2.3 meter mining height resulted in upgrading the grade by 65% and
rejecting 40% of the material.
Joe Mann Mine
As the Devlin mine become depleted, the Joe Mann mine would be restarted. Once the mine would be
dewatered, the Corporation would start an underground exploration program with the objective of
augmenting the mineral resources to increase the mine life beyond the PEA study.
Longhole mining method was chosen for Joe Mann with the mined material to be brought to surface using
the existing shaft and hoist. The mined material would be transported by trucks to the Corner Bay site (total
of 43.5 km) for crushing and then transported by trucks to the Copper Rand mill for processing.
In the PEA, the Joe Mann mine has a mine life of four years with maximum production of 590 tpd. It is
anticipated that additional mineral resource can be defined to increase mine life.
Metallurgy and Processing
The PEA relies on the metallurgical results of the operational data from the processing of a Corner Bay bulk
sample in 2008 at the Copper Rand mill, historical flotation tests done on Corner Bay mineralized material,
recent material sorting test results completed by Corem on Corner Bay and Devlin mineralized material,
recent flotation tests on Devlin completed by SGS Canada Inc., and historical operational data from Joe
Mann when it was treated in the Copper Rand mill . The expected metal recoveries for the three proposed
mines are shown in Table 7.
Table 7: LOM Recovery Rates
Project Cu Recovery % Au Recovery, % Cu Grade in Concentrate, %
Corner Bay 93.2 78.0 24.7
Devlin 95.5 72.5 20.5
Joe Mann 93.9 83.6 15.9
The PEA proposes to refurbish the Copper Rand mill, which closed in 2008 after approximately 50 years
of operation. The mill was constructed in 1959 and expanded twice in the early 1980s and again in 2001.
Historically, the mill operated with a mixture of local ores at an instantaneous rate of 2,700 tpd.
The existing crushing and conveying circuit at the Copper Rand mill will not be used or upgraded since it is
more efficient to install a new crushing circuit and ore sorting plant at Corner Bay . The sorted pre-
concentrate will be trucked to the Copper Rand site and stockpiled by the mill building where it will be
reclaimed in a hopper and fed via a single conveyor to a new 1 ,500 kW ball mill (4.0 meters diameter by
7.15 meters long) to be located in the 1984 expansion area of the existing mill. This new ball mill will replace
the existing 1950’s rod mill and four ball mills in the circuit. Th is will result in significantly less project
execution risk and a mill that will require less manpower and be superior in terms of energy efficiency,
process control and safety. The ball mill discharge will be pumped to a new hydro-cyclone in closed circuit.
The hydro-cyclone underflow will flow to a screen and the un dersize will feed two gravity concentrators.
The hydro-cyclone overflow, at an 80% passing size of 100 µm, will flow by gravity to the existing flotation
area where sequential rougher and scavenger flotation will recover the copper . The rougher concentrate
treated by regrinding and cleaner flotation will produce a copper concentrate with an average grade of
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23.7% Cu over LOM. The gravity gold bearing concentrate will be blended into the copper concentrate. The
concentrate is considered very clean as it does not contain any elevated deleterious elements. The moisture
content of the concentrate will be reduced to approximately 8% before being transported to the port of
Québec City for onward shipping to international smelters, or to a local smelter.
Figure 2: Annual Copper Equivalent (CuEq) Production (in-concentrate) Schedule
Infrastructure and TMF
The Project benefits greatly from substantial infrastructure in place, including the mill facility, all weather
access roads, 25 kV powerline and a 10.5 MW substation sufficient for the mill power requirements, TMF,
office building, core shack and water supply.
A 16 km forestry road from Québec Highway 167 will be upgraded and constructed to access the Corner
Bay mine site, decreasing the distance between Corner Bay and Copper Rand mill by over 9 km one way .
The Devlin mine site will be accessed via a 3.25 km upgraded road branching off from the Corner Bay road.
Both mine site s are designed to be compact with required infrastructure near the portal. A substation
connected to the Québec grid and a 34 kV powerline will supply power to the Corner Bay and Devlin mines.
The Joe Mann mine will utilize the existing logging roads and powerline to site.
The TMF is located 1.5 km by road from the Copper Rand mill within the existing Copper Rand TMF . The
tailings will be thickened and pumped to a newly constructed filtration plant at the mill site. The filtered
tailings will then be trucked 1.5 km, placed and compacted to the targeted density. The dry stack tailings
facility (filtered tailings) will be built within the footprint of the existing Copper Rand TMF. A liner will be used
to separate the filtered tailings from the in-situ tailings. The run-off water from the filtered tailings facility will
be treated in a water treatment plant and discharged into the existing Copper Rand TMF polishing pond.
Water will flow by gravity from the polishing pond into Lac Doré as it presently occurs. The proposed TMF
has capacity to be expanded to approximately 12 Mt of tailings, representing an increase of 7.5 Mt from the
current design of 4.5 Mt.
Workforce
The Project plans to source most of its workforce locally. The peak workforce during operations is estimated
at approximately 320 persons.
-
20
40
60
80
100
1 2 3 4 5 6 7 8 9 10 11
CuEq Lbs (in Millions)
Year
Mill Recovered CuEq Lbs
Corner Bay Devlin Joe Mann