CuFe Expands Orlando Study to Underground Mining, Lifts NPV to A$908m

Expanded Study Boosts Orlando Project Economics

CuFe Limited (ASX:CUF) has unveiled an expanded scoping study for its 55% owned Orlando copper-gold project near Tennant Creek, Northern Territory, that now factors in underground mining and additional revenue from bismuth and silver. The results show a robust standalone project with a net present value (NPV) of approximately A$705 million on a 100% basis at base case metal prices, surging to A$908 million when applying spot prices as at April 8, 2026. The internal rate of return (IRR) is a striking 111%, with a payback period of just 10 months, underscoring the project's compelling financial profile.

This expanded study builds on the previous open pit-only scoping study released in July 2025 and reflects the full development of the Orlando deposit, including construction of a new processing plant sized at 850,000 tonnes per annum. The plant purchase and installation costs of A$86 million dominate the estimated A$141 million total pre-production capital expenditure, although CuFe is actively exploring capital reduction strategies such as sharing plant costs with alliance partners Emmerson Resources (ASX:ERM) and Tennant Minerals (ASX:TMS), sourcing second-hand plant equipment, or adopting a Build, Own, Operate, Transfer (BOOT) model with contractors.

Integrated Open Pit and Underground Mine Plan

The study integrates an open pit and underground mining schedule that operate concurrently, optimising ore feed to the plant while sharing workforce and fixed costs. The open pit targets 4.6 million tonnes at average grades of 1.10% copper and 2.11 grams per tonne gold, while the underground operation accesses higher-grade gold zones averaging 2.4 grams per tonne. This combined approach adds approximately 1.1 million tonnes of plant feed compared to the open pit alone, significantly improving project economics.

Importantly, 88% of the production target is sourced from Indicated Mineral Resources, with only 12% from Inferred Resources, which carry a lower geological confidence. The company emphasises that early years of mining; covering the capital payback period; are predominantly from Indicated Resources, mitigating some of the typical risks associated with Inferred classifications. This resource upgrade follows recent work that increased the Indicated portion of the Orlando deposit, enabling underground mining studies and the inclusion of critical minerals such as bismuth and silver into the economic evaluation, as detailed in the recent Orlando resource confidence boost and resource upgrade to 87% Indicated.

New Revenue Streams from Bismuth and Silver

The inclusion of bismuth and silver as recoverable metals marks a notable enhancement to the project’s revenue profile. The flotation circuit has been modified to produce two concentrates: a copper-gold-silver rich concentrate with managed low bismuth levels to avoid smelter penalties, and a separate high-bismuth concentrate that captures the value of this critical mineral. Bismuth prices are rising sharply due to increased US demand, adding strategic value beyond traditional copper-gold economics.

Historical and recent metallurgical testwork supports an assumed bismuth recovery of around 80%, with silver recovery estimated equivalent to gold. This diversification of revenue streams contributes to the project's resilience and attractiveness to investors and offtake partners.

Strategic Partnerships and Funding Pathways

CuFe is advancing feasibility studies in conjunction with its Tennant Creek Copper Alliance partners, supported by government grants totaling $600,000 for a multi-user critical minerals processing plant feasibility study. This alliance and the proposed standalone plant at Orlando offer opportunities to share capital costs and extend plant life by incorporating additional feed from the larger Gecko deposit and other regional resources.

Strong inbound interest from leading trading houses and strategic investors is reported, with discussions set to intensify following the scoping study release. The recent acquisition of alliance partner Emmerson Resources by Pan Africa Resources for around $300 million signals growing corporate activity and confidence in the Tennant Creek region’s copper-gold assets.

CuFe is also investigating early cash flow options by mining a small cutback of the open pit above the water table and toll treating ore at third-party facilities, potentially accelerating project funding and de-risking the timeline.

Environmental and Permitting Considerations

Environmental and heritage studies have commenced, with no significant biophysical constraints identified so far. The project benefits from historical mining disturbance and existing infrastructure, which may streamline approval pathways. CuFe aims to minimize the disturbance footprint to expedite environmental approvals, expected to take 12–18 months, followed by approximately 12 months of construction before production commencement.

CuFe’s approach aligns with recent successful regional projects, and ongoing engagement with the Northern Territory Government and Central Land Council is underway to secure necessary permits and Indigenous agreements.

Risks and Next Steps

While the expanded scoping study presents a promising development case, CuFe cautions that the study is preliminary with an accuracy of ±50% and relies on a portion of Inferred Mineral Resources. There is no certainty that the production targets or financial outcomes will be realised, and funding remains subject to market conditions and investor appetite.

The company plans to advance feasibility studies with a focus on geotechnical drilling, metallurgical testwork for bismuth and silver recovery, detailed engineering, and regulatory approvals. Resource reclassification work at the Gecko deposit is underway, which could further enhance project scale and economics.

With commodity prices and operational costs being the most sensitive variables affecting NPV, CuFe’s ability to secure funding, execute permitting, and progress engineering will be critical to translating this strong scoping study into a producing asset.