US Copper Corp's Moonlight-Superior Project: A US$1.075 Billion Opportunity

US Copper Corp (TSXV: USCU) (OTCQB: USCUF) (FSE: C730) has released the results of a Preliminary Economic Assessment (PEA) for its entire 100% controlled Moonlight-Superior Copper Project in Northeast California. The PEA, conducted by Global Resource Engineering Ltd. (GRE), demonstrates the project's significant economic potential at current copper prices. The following article explores the key findings of the PEA and their implications for investors.

The Moonlight-Superior PEA highlights the project's substantial economic opportunity, with an after-tax NPV of US$1.075 billion at a 7% discount rate and an after-tax IRR of 23%. The project is expected to have a mine life of 14 years, producing 903,000 short tons of copper, 12,000,000 oz of silver, and 63,000 oz of gold. The PEA also estimates an all-in sustaining cost (AISC) of US$2.51 per pound of copper produced.

The project's economics are sensitive to changes in copper prices and operating costs. A sensitivity analysis conducted as part of the PEA shows that the project's NPV and IRR are significantly impacted by changes in these factors. For instance, a 10% increase in the copper price could increase the after-tax NPV to US$1.5 billion or more, while a 10% decrease in the copper price could reduce it to US$700 million or less. Similarly, a 10% increase in operating costs could reduce the after-tax IRR to 15% or less, while a 10% decrease in operating costs could increase it to 30% or more.

The Moonlight-Superior PEA also highlights the project's potential for resource expansion drilling. The PEA does not include the Superior and Engels deposits or the several untested exploration targets on the property. The inclusion of these additional resources could significantly enhance the project's size and value.

In conclusion, the Moonlight-Superior PEA demonstrates the project's substantial economic opportunity at current copper prices. The project's long mine life, high production rate, and potential for resource expansion drilling contribute to its significant value. However, investors should be aware of the project's sensitivity to changes in copper prices and operating costs. As the project advances, US Copper Corp will continue to evaluate its economics and pursue strategic partnerships to bring the Moonlight-Superior Copper Project to fruition.

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