Caravel Minerals has released an updated strategic mine plan for its Western Australian copper project, confirming a robust 25+ year operation with improved ore grades and deferred capital expenditure. The plan prioritises conventional diesel mining and optimised pit sequencing to reduce risk and enhance early cash flow.
- 25+ year mine life with 1.527 million tonnes copper production
- Deferred Dasher pit development to Year 5 reduces upfront capital
- Conventional diesel mining reduces execution risk and power dependency
- Early high-grade ore from Bindi pit maximises initial cash flow
- Simplified site layout avoids public road relocation, easing permitting
Strategic Update Strengthens Project Viability
Caravel Minerals Limited (ASX – CVV) has delivered a comprehensive update to its Strategic Mine Plan for the Caravel Copper Project in Western Australia’s Wheatbelt region. The refreshed plan confirms a robust operation extending beyond 25 years, underpinned by optimised sequencing, improved ore quality, and a pragmatic mining methodology that balances risk and flexibility.
Central to the update is the decision to adopt conventional manned diesel-powered mining equipment, a move that mitigates early-stage execution risks by eliminating reliance on external electrical infrastructure. This approach also preserves the option to introduce autonomous haulage systems and electrification technologies later, when infrastructure and pit depth conditions are favourable.
Optimised Pit Sequencing and Capital Efficiency
The mine plan strategically defers the development of the Dasher pit until Year 5, allowing the operation to focus initially on the Bindi pit’s higher-grade zones with an ultra-low strip ratio. This sequencing not only maximises early cash flow but also reduces upfront capital expenditure and operational complexity. The Bindi pit is scheduled in six progressive stages, delivering an average copper grade of 0.27% during the first five years at a strip ratio of just 0.64 – 1.
Further technical refinements include optimised bench heights and selective excavation techniques that significantly reduce ore loss and dilution, thereby improving the quality of ore fed to the processing plant. The updated surface infrastructure layout notably eliminates the need to relocate the Calingiri-Wongan Hills public road, simplifying permitting and reducing environmental disturbance.
Robust Production and Economic Assumptions
The plan forecasts production of approximately 1.527 million tonnes of copper contained in concentrate over the mine life, alongside significant quantities of molybdenum, gold, and silver. Metallurgical testwork confirms strong recovery rates, including an improved 63% molybdenum recovery, a 26% increase over previous estimates.
Economic assumptions reflect current 2025 market conditions, with copper priced at US$4.20 per pound and gold at US$2,100 per ounce. Mining costs have been updated to incorporate prevailing diesel prices and equipment costs, resulting in an average unit mining cost of $4.74 per tonne. The plan’s sensitivity to copper price upside highlights the project’s strong leverage to favourable commodity markets.
Path Forward and Risk Mitigation
The updated mine plan feeds directly into the ongoing Definitive Feasibility Study (DFS), which is advancing process plant design, water pipeline, tailings management, and other infrastructure elements. The single-stage processing plant will ramp up to 30 million tonnes per annum over 2.5 years, with concurrent commissioning of dual processing lines to reduce schedule risk.
Risk management is a clear focus, with the conventional mining approach reducing dependency on power infrastructure and the phased pit development easing operational complexity. Stockpile management and flexible scheduling provide operational agility, while resource confidence is bolstered by reliance on predominantly Measured and Indicated resources.
Bottom Line?
Caravel’s strategic mine plan update balances robust long-term production with capital discipline and operational flexibility, setting the stage for a decisive DFS phase.
Questions in the middle?
- When will Caravel decide on introducing autonomous haulage or electrification technologies?
- How will deferred Dasher pit development impact overall project capital and cash flow timing?
- What are the detailed capital expenditure estimates expected from the upcoming Definitive Feasibility Study?