Article on Industry Qld website: Study Shows impressive economics in tungsten planThe Mount Carbine tungsten mine expansion project would deliver strong early cash flow after an estimated $19 million investment to get it rolling, a bankable feasibility study shows.
Mine owner EQ Resources said the project delivered impressive economics including a net present value (NPV) of $131.5 million and an internal rate of return (IRR) of 154 per cent.
The study focused on the proposed development of the high-grade Andy White open pit, to be supplemented with processing of the 12 million tonne low-grade stockpile in joint venture with Cronimet.
It contemplates a 12-year operation, with processing of material from the high-grade open pit expected to produce operational pre-tax cash flow of $38 million and $95 million respectively in years three and four of execution.
“The study is the culmination of more than 12 months’ work from EQR’s people and our consultants, aimed at de-risking the mining and processing of the on-ground low-grade stockpile and the Andy White open pit higher-grade ore,” EQ Resources chief executive officer Kevin MacNeill said.
“We have quickly demonstrated the significant value in the company’s high-grade open pit resource, which delivers strong cash flow in years three and four where the open pit ore will be processed for a relatively small level of capex investment.
“Our significant underground resource, which equates to approximately 80 per cent of the company’s total in-situ resource of 9.21 million tonnes, has not been included in the BFS and will form part of the scoping study.”
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He said the company had made a substantial investment in exploration and early works, which was already included in
the projected capital cost of Phase 1 and Phase 2 development.“Concentrate production has been rising as this capital equipment has come online, giving the team enormous confidence in the assumptions contained in the study,” Mr MacNeill said.
“As the BFS has now been finalised and is supporting further discussions with various financial institutions, we are confident in being able to execute our plan and to build a sustainable mine with a circular outcome as we produce tungsten concentrate with a low carbon footprint and utilise waste rock in our growing Mount Carbine quarry business.
“Phase 3 is already firmly in our planning as we seek to return Mount Carbine to its former glory using high-tech ore-sorting and low-impact processing techniques to produce a very saleable product.”
