Santo Domingo is a top quartile copper-iron-gold project with an opportunity to build a low-cost, vertically integrated battery-grade cobalt business, and Chile’s only fully-permitted greenfield project. Located in a mining-friendly region, 50 kilometres southwest of Codelco's El Salvador copper mine and 130 kilometres north-northeast of Copiapó, near the town of Diego de Almagro in Region III, Chile, with support from the local community and government. Elevation at the site ranges from 1,000 to 1,280 metres above sea level, with relatively gentle topographic relief.

Step Change Optionality

Fully-permitted copper-iron-gold project

A rare first quartile project with all construction permits in hand and 18 year mine life

Robust project economics

US$1.03 billion NPV(8%) and 2.8 year payback with potential to improve project economics with infrastructure sharing opportunities

Battery-grade cobalt sulfate opportunity

2020 PEA on the additional cobalt production results in a NPV(8%) of US$1.66 billion, after tax

Santo Domingo is owned 70% by Capstone and 30% by Korea Resources Corporation (KORES), the Korean state-owned resource acquisition enterprise. A strategic process is in place to right-size or monetize Capstone’s ownership.

Capstone released results of an updated technical report in February 2020 that includes a higher level of CAPEX/OPEX certainty, additional key permits and the development in Section 24 of a Preliminary Economic Assessment with respect to cobalt production. See the February 19, 2020 news release for full details. Download the presentation

On September 16, 2020, Capstone announced Minera Santo Domingo (“MSD”) has entered into a MOU with Puerto Abierto S.A. (“PASA”), a wholly owned subsidiary of Puerto Ventanas S.A. (subsidiary of Sigdo Koppers S.A.). During a 90 day period, MSD and PASA will together explore mutual synergies and regional benefits for the proposed port component of the Santo Domingo Project, Puerto Santo Domingo. See the news release for full details.

Location

Santo Domingo Location

Key Facts (February 2020 Technical Report)

Primary mineralization Copper
By-products Magnetite iron and gold, with potential to produce battery-grade cobalt sulfate
Estimated mine life (years) 18
Proposed mining type Open pit
Proposed throughput LOM average: 60,500 tpd
First 5 years: 65,000 tpd
Average annual production LOM average: 137 M lbs Cu, 4.2 Mt Fe, 17 koz Au
First 5 years: 259 M lbs Cu, 3.3 Mt Fe, 35 koz Au
Grade Cu 0.30%
Fe 28.15%
Au 0.04 g/t
No cobalt processing
Development Capital: $1.51B
IRR (after tax): 21.8%
NPV (8% discount after tax): $1.03B
Payback (after tax): 2.8 years
Including cobalt processing opportunity
Development Capital: $2.18B
IRR (after tax): 23.0%
NPV (8% discount after tax): $1.66B
Payback (after tax): 3.5 years

Mineral Reserves & Resources

Santo Domingo Estimate Mineral Reserves as at December 31, 2019

Stage Tonnes
(Mt)
Grade Contained Metal
Cu
(%)
Au
(g/t)
Fe
(%)
Cu
(kt)
Au
(koz)
Magnetite Conc. (Mt)
Proven Reserves
Santo Domingo Sur 65.4 0.61 0.08 30.9 398 169.9 8.2
Probable Reserves
Santo Domingo Sur 252.1 0.27 0.04 27.8 674 300.8 48.2
Iris Norte 74.8 0.13 0.01 26.9 94 36 18.7
Total Probable 326.9 0.24 0.03 27.6 768 336.8 66.9
Total Mineral Reserves
Proven + Probable 392.3 0.30 0.04 28.2 1167 506.7 75.1

NOTE: Mineral Reserves have an effective date of 14 November 2018 and were prepared by Mr. Carlos Guzman, CMC, an employee of NCL. Mineral Reserves are reported as constrained within Measured and Indicated pit designs and supported by a mine plan featuring variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of US$3.00/lb Cu, US$1,280/oz Au and US$100/dmt of Fe concentrate; average recovery to concentrate is 93.4% for Cu and 60.1% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper concentrate treatment charges of US$80/dmt, U$0.08/lb of copper refining charges, US$5.0/oz of gold refining charges, US$33/wmt and US$20/dmt for shipping copper and iron concentrates respectively; waste mining cost of $1.75/t, mining cost of US$1.75/t ore and process and G&A costs of US$7.53/t processed; average pit slope angles that range from 37.6º to 43.6º; a 2% royalty rate assumption and an assumption of 100% mining recovery. Rounding as required by reporting standards may result in apparent summation differences between tonnes, grade and contained metal content. Tonnage measurements are in metric units. Copper and iron grades are reported as percentages, gold as grams per tonne. Contained gold ounces are reported as troy ounces, contained copper as million pounds and contained iron as metric million tonnes.

Santo Domingo Estimated Mineral Resources as at February 13, 2020

Deposit Tonnes (Mt) CuEq (%) Cu (%) Au (g/t) Fe (%) S (%) Co (ppm)
Total Measured Resources 66 0.81 0.61 0.081 30.9 2.3 254
Santo Domingo Sur 64 0.82 0.62 0.082 31.1 2.4 254
Iris 2 0.42 0.39 0.047 23.6 1.4 250
Total Indicated Resources 471 0.48 0.26 0.034 25.0 1.9 225
Santo Domingo Sur 224 0.54 0.31 0.043 26.6 2.4 275
Iris 103 0.45 0.19 0.027 25.9 1.3 166
Iris Norte 89 0.44 0.12 0.014 26.7 2.6 231
Estrellita 55 0.40 0.38 0.039 13.7 0 125
Total M & I 537 0.52 0.30 0.039 25.7 2.0 229
Total Inferred Resources 48 0.41 0.19 0.025 23.6 2.2 197
Santo Domingo Sur 24 0.40 0.22 0.033 22.8 2.5 195
Iris 4 0.42 0.19 0.024 26.6 0.7 125
Iris Norte 14 0.45 0.09 0.009 28.1 2.8 256
Estrellita 5 0.32 0.31 0.030 12.3 0 108

NOTE: Mineral Resources are classified according to CIM (2014) standards. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Qualified Person for the estimates is Mr. David Rennie, P. Eng., an associate of Roscoe Postle Associates Inc. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellita deposits have an effective date of 13 February 2020. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellita deposits are reported using a cut-off grade of 0.125% copper equivalent (CuEq). CuEq grades are calculated using average long-term prices of US$3.50/lb) Cu, US$1,300/oz Au and US$99/(dmt) Fe conc. The CuEq equation is: % Cu Equivalent = (Cu Metal Value + Au Metal Value + Fe Metal Value) / (Cu Metal Value per percent Cu). The general equation for metal value is: Metal Value = Grade * Cm * R * (Price – TCRC – Freight) * (100 – Royalty) / 100, were Cm is a constant to convert the grade of metal to metal price units, R is metallurgical recovery, and TCRC is smelter treatment charges and penalties. Only copper, gold and iron were recognized in the CuEq calculation; cobalt and sulphur were excluded. Mineral Resources are constrained by preliminary pit shells derived using a Lerchs–Grossmann algorithm and the following assumptions: pit slopes averaging 45º; mining cost of US$1.90/t, processing cost of US$7.27/t (including G&A cost); processing recovery of 89% copper and 79% gold, iron recoveries are calculated based on magnetic susceptibility; and metal prices of US$3.50/lb Cu, US$1,300/oz Au and US$99/dmt Fe concentrate. Rounding as required by reporting standards may result in apparent summation differences. Tonnage measurements are in metric units. Copper, iron and sulphur are reported as percentages, gold as grams per tonne and cobalt as parts per million.