13th Oct 2014 07:53
LONDON (Alliance News) - Premier African Minerals Ltd Monday said the life of mine in the revised Preliminary Economic Assessment model for its RHA Tungsten project in Zimbabwe has more than doubled to 15 years, and it has started infrastructure work at the site.
In a statement, Premier African said Bara Consulting has been updating the Preliminary Economic Assessment, and now gives a pretax project net present value at 5% of US183 million and an internal rate of return of 455%.
"This update to our September 2013 Preliminary Economic Assessment takes into account recently announced mineral resource increases, final metallurgical studies and test work and a number of other important trade-off and optimisation studies and whilst still at PEA status, reflects a substantial increase in the confidence levels of the project," Chief Executive George Roach said in a statement.
"We expect to provide more details of the low capital, near term production options we plan to implement in the near term," he added.
The results of the updated model compared to the 2013 PEA is tabulated below.
COMPARISONOFMODELRESULTS | ||
Item | PEA2013 | RevisedModel2014 |
LifeofMine(Years) | 6 | 15 |
AverageHeadgrade(kg/t) | 7.51 | 6.97 |
PlantRecovery(%) | 85.0 | 82.8 |
Concentrateproduced(t) | 8,908 | 23,907 |
ContainedWO3produced(t) | 5,790 | 15,051 |
Price(US$/MTU) | 320.00 | 288.60 |
Revenue(US$million) | 185.3 | 434.7 |
Operatingcost(US$million) | 51.7 | 145.9 |
Capitalcost,Project(US$million) | 11.2 | 12.8* |
Capitalcost,Sustaining(US$million) | 0 | 3.2 |
Contingency | 2.2 | 2.3 |
NetCashflow(US$million) | 120.1 | 270.5 |
NPVat5%discountrate(US$million) | 99.3 | 183 |
IRR(%),Pre-tax | 378 | 455 |
Premier African Minerals shares were up 9.1% at 1.20 pence early Monday, one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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