{"id":141939,"title":"Halo Minerals raises Playa Verde copper reserves to 33.94m tonnes","publisher":"Share Talk","author":"sharetalk","published":"2026-10-16T14:21:35+00:00","modified":"2026-10-16T14:21:35+00:00","canonical_url":"https://www.share-talk.com/halo-minerals-raises-playa-verde-copper-reserves-to-33-94m-tonnes/","markdown_url":"https://www.share-talk.com/halo-minerals-raises-playa-verde-copper-reserves-to-33-94m-tonnes.md","json_url":"https://www.share-talk.com/halo-minerals-raises-playa-verde-copper-reserves-to-33-94m-tonnes.json","category":"Mining","categories":["Mining"],"tags":["Andrew Dennan","Atacama Region","Chañaral","Chile","Frank Jackson","HALO","Playa Verde Project"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/d5c7cd5e-9bbb-4e29-b50a-69d82fc235ec.png?fit=1727%2C911&quality=80&ssl=1","format":"news","language":"en-GB","content":"[Halo Minerals plc (AIM: HALO)](https://www.investegate.co.uk/announcement/rns/halo-minerals-plc--halo/increased-ore-reserve-and-improved-economics/9825981) has reported a 5.4% increase in ore reserves at its Playa Verde copper tailings project in Chile, with an updated independent technical assessment valuing the development at US$174.3 million after tax and highlighting potential upside towards US$300 million.\n\nThe copper development company confirmed that **ore reserves have increased by 1.74 million tonnes to 33.94 million tonnes**, grading approximately 0.25% copper and containing 83,626 tonnes of in-situ copper.\n\nThe updated Competent Person’s Report, prepared by EMI-Ingenieros y Consultores, incorporates revised engineering studies, operating costs and mineral resource classifications under the JORC 2012 reporting standard.\n\n**The project’s current ore reserve base case delivers an after-tax net present value (NPV10) of US$174.3 million and an internal rate of return of 45.6%**, based on a 10% discount rate.\n\nThe assessment also forecasts average annual free cash flow of approximately **US$56 million**, with total life-of-mine revenue estimated at US$774.6 million and operating costs of US$292.5 million.\n\nThe base-case economics assume copper prices of US$6.20 per pound, gold prices of US$3,700 per ounce and initial capital expenditure of US$92.8 million.\n\n**Playa Verde’s total mineral resource stands at 53.44 million tonnes grading 0.24% copper**, containing approximately 127,911 tonnes of in-situ copper. This figure includes the declared ore reserves rather than representing additional material.\n\nA separate management scenario incorporating the full onshore mineral resource indicates an **after-tax NPV10 of US$267.5 million and an internal rate of return of 48%**.\n\nHowever, this broader scenario extends beyond the currently declared ore reserves and should not be confused with the independently supported reserve-only economic case.\n\nFurther opportunities have been identified to improve project economics through lower construction and operating costs.\n\n**A potential US$6 million reduction in capital expenditure, combined with lower sulphuric acid costs, could increase the reserve-based NPV10 to US$190.6 million**, with the internal rate of return rising to 51%.\n\nApplying these improvements to the full-resource management scenario produces a potential **after-tax NPV10 of US$295.5 million and an internal rate of return of 54%**.\n\nThese enhanced valuations remain dependent on successfully delivering the proposed cost reductions and, in the full-resource case, converting additional mineral resources into economically recoverable reserves.\n\nThe project’s updated engineering assessment estimates **initial development costs of US$92.8 million**, with opportunities to reduce expenditure by US$6 million to US$10 million through engineering improvements and competitive procurement.\n\nHalo is also investigating long-term sulphuric acid supply arrangements that could reduce reagent costs from US$200 to US$150 per tonne, potentially improving operating margins.\n\n**The current development plan targets approximately five million tonnes of processing capacity annually**, supporting an initial operating period of around seven years.\n\nThe processing operation would recover copper from historical mining waste using a combination of acid leaching, solvent extraction, electrowinning and flotation.\n\nOverall copper recovery is estimated at approximately 72%, with the reserve-based economic case forecasting **59,400 tonnes of recovered copper over the project life**.\n\nThe company plans to extract tailings through a controlled dredging operation, with processed material redeposited behind the advancing extraction area.\n\n**Further reserve expansion could provide additional upside**, with EMI identifying preliminary potential to increase declared ore reserves by approximately 25% to 30%.\n\nIf confirmed through additional technical work, this could lift reserves to between **42.4 million and 44.1 million tonnes**, although further drilling, resource modelling and verification would be required.\n\nHalo is also evaluating longer-term opportunities within the adjacent surf and bay zones, where historical exploration has identified additional potentially mineralised tailings outside the current resource estimate.\n\n**Chief Executive Andrew Dennan** said the updated report provided an independent reassessment of Playa Verde’s economics and highlighted the potential value of additional resources and operating improvements.\n\nHe noted that the company is now focused on completing the remaining optimisation, commercial and financing work needed to progress the project towards a final investment decision.\n\n**For investors, the increased reserve estimate and improved economic projections represent a significant development milestone**, with the base-case valuation of US$174.3 million providing a defined starting point for assessing the project.\n\nHowever, the larger valuation scenarios remain conditional, and the project must still secure the necessary financing and complete outstanding development work before construction can proceed.\n\n**Attention will now turn to funding arrangements, potential reserve upgrades and further cost optimisation**, as Halo Minerals seeks to advance Playa Verde towards a final investment decision and eventual copper production."}