After reading the PFS update and its presentation carefully I saw that LTR will announce a lots of news in coming days, weeks and months.
MINE THROUGHPUT WILL BE INCREASED FROM 2mtp TO 4mtpaI can see that their first goal is to ensure the mine throughput (ore feed to concentrate plant) which is 2mt per annum now, will be increased to 4mt per annum on the PFS.
The mine life of 40 years given on the PFS for 2mtpa throughput is too long anyway. If they can increase it to 4mt while also increasing the resource and reserves a little bit more, then the mine life would be around 25 years. That would be a perfect fit for the lithium supply chain timeline of the world battery markets.
4mt throughput for the mine would significantly increase the financial metrics of the project.
The spod concentrate (SC6%) output capacity will be doubled (tantalum as well). it will be increases from 350kt per annum to 700kt per annum (860tpa of 30% tantalum concentrate)
.
The project NPV and IRR will increase significantly while the CAPEX won't go much high. And the payback period should be lower than 3 years. Then the project would definitely be much more attractive.
On the PFS Update anns; "
It should be noted that key capital considerations in both the mine and the processing plant have been incorporated upfront to enable a future throughput expansion to 4Mtpa with minimal impact on the operating project. At a throughput of 4Mtpa final product, production would increase to 700ktpa of SC6.0 and 860tpa of 30% tantalum concentrate".
D. Richards said on the RSS interview;
"“
We have a mine life already of 40 years we’re not going to rush into expanding the resource but there is potential to do so. As I mentioned before we’ll be looking to expanding throughput from 2 million tonnes to 4 million tonnes and the PFS we’ve just completed includes a mine design and mill design where the front end is actually capable of taking 4 million tonnes up front".
They have already made the mine and process calculation and flow design according to 2mtpa and 4mtpa throughput, and the work demonstrated no constraints in an ore supply of 4Mtpa as said on the PFS update.
The important parts of the processing machines were already chosen for 4mtpa throughput.
- The primary jaw crusher has been sized to suit 4Mtpa
- The secondary crusher and screen layout have been designed to enable a doubling of capacity (2 to 4Mtpa) with specific space/layout considerations for an additional crusher and screen.
- The HPGR (High Pressure Grinding Rolls) scalping screen and associated conveyors have been sized to suit 4Mtpa.
- The milling, flotation, reagents and thickening circuit has been designed about a ‘central spine’ to enable ‘mirroring’ of the 2Mtpa circuit with space allowance/s for the expansion included in the overall process plant footprint.
- The concentrate storage area has been designed to suit 4Mtpa concentrate volumes.
So, we are on to 4mt per annum throughput and 700kt per annum SPod concentrate capacity.
MORE DRILLING FOR RESOURCE CONVERSION AND RESERVE EXPANSION(For confirming and ensuring 4 mtpa throughput)Now they need to drill a little bit more (I like this "a little bit more" saying now. It actually goes all the way through when some certain people us this wording
, like Elon Musk and TG).
They said that PFS via underground mine planning activities has identified accessible inferred material that potentially could be added to the reserve (if further drilling was undertaken).
A small drilling program is planned in Q4 2020 to convert this material to Indicated resource category.
The graph was given on the page 10 of last preso.
The question might be;
Do we really have any more resource there?
Yes we have...
Even at very high grades (over 1.8%)I knew it and I was questioning why they were not keep drilling the extension of the very high grade intersections on my post
#:43960885 on April 4 2020 after they decided to stop drilling and announcing the new MRE (156mt).
The high grade sections where the drilling was stopped can be seen here; (the graphics from the last preso).
The new drilling should be done on these sections IMO which I marked with the red arrows.
See the purple, pink and red areas. They are over 1.8% Li2O grades.
(20min delay)