AAR 4.76% 11.0¢ astral resources nl

processing facilities

  1. 1,477 Posts.
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    I am considering re-entering this stock but have a few questions.

    If we assume that the PFS and then the subsequent BFS are positive and the required capital to start up operations is raised, then obviously a treatment plant is required. Related to this i would assume toll treatment or relocation of a suitable second hand plant would reduce capex requirements, however toll treatment would increase op exp due to trucking requirements.

    The company has alluded to the fact that the ore could be toll treated.

    Having been a fairly regular visitor to Halls Creek in the past few years i can only find two possible scenarios concerning toll treatment.

    First would be the TeckComincoXstrata owned joint venture operation (Lennard Shelf)at Pillara , which i think would be around 250 kms from Koongie. This plant has been recently recommissioned, has a new power station etc and is set up to process/produce lead and zinc concentrate.
    Would it require much modification to process the copper ore from Koongie?
    Or would it be more cost effective to relocate this plant to Koongie? There have been rumours that Pillara may close within the next 12 months and hence the plant would be surplus to their requirements.

    The only other operating mine in the area is the Sally Malay operation which produces nickel concentrate. If there was surplus capacity there could that realistically process ore from Koongie? Sounds improbable to me but i know very little about ore processing.

    I have discounted the gold treatment plant at Nicholsons Find as i have been advised that it is basically in poor condition and very small.Certainly REWAH never got the thing to work properly when they were operating at NF.

    Personally if they have to construct from scratch a new facility at Koongie the establishment timeframe just gets longer and longer and presumably so does the level of capex required.

    Any thoughts would be appreciated.I have posted regarding this before but that was before the possibility of Pillara closing before it was scheduled to do so.

 
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