- Write by:
-
Friday, September 11, 2020 - 12:51:06 PM
-
562 Visit
-
Print
Mining News Pro - A definitive feasibility study (DFS) into the Orokolo Bay industrial sands project, in Papua New Guinea, has estimated that the project would require a capital investment of $20.48-million.
Project owner Mayur Resources on Friday said that the DFS estimated that the project would generate revenues of some $969-million over a mine life of 15 years, producing 400 000 t/y of vanadium titano-magnetite, 100 000 t/y of magnetite for dense media separation, 8 000 t/y of zircon concentrate and 1-million tonnes a year of silica construction sand.
The study estimated that based on the five-million-tonne-a-year throughput rate, the Orokolo Bay project would have a post-tax net present value of $131-million and an internal rate of return of 103.7%, with life-of-project earnings before interest, taxes, depreciation and amortisation of $380-million.
“The results of the DFS are extremely encouraging and confirm the value of Mayur’s 51% interest in the Orokolo project of circa $67-million, which is roughly equivalent to the entire market value of Mayur Resources today,” said MD Paul Mulder.
“The market currently is effectively ascribing no value in the company’s other projects including our flagship Central and cement limestone project, which was recently awarded a mining lease and has a $352-million net present value, the Lae Energy Enviro Park, our coal assets or our copper and gold portfolio.”
Mulder said a mining lease application would be submitted for the Orokolo Bay project in October this year, with pilot plant construction and commissioning scheduled for the second quarter of 2021, depending on travel restrictions.
Commercial scale product trial shipments are targeted for the second quarter of 2021, and a final investment decision is being targeted for the second quarter.
Mayur earlier this week announced plans to spin out its Papua New Guinea gold and copper assets into a TSX-V listed entity, allowing the company greater focus and time to realise returns from the Orokolo Bay industrial sands project, and the Lae Enviro Energy Park and Central cement and lime project.
Short Link:
https://www.miningnews.ir/En/News/597981
Oxford Economics Australia has released data showing mine maintenance spending may be hitting its peak. But what does it ...
South African diversified miner Sibanye Stillwater is discussing with lenders to temporarily lift limits on borrowings, ...
Copper climbed above $10,000 a ton as predictions for tighter global supplies and rising consumption in electric ...
Canada’s mining industry is pushing for an carveout to the federal government’s proposed increase to capital gains ...
Copper output in Chile, the world’s largest producer of the metal, edged down in March, data from copper commission ...
Panama’s president-elect has ruled out talks with Canadian miner First Quantum Minerals until it drops multiple ...
Africa-focused Montage Gold announced Thursday it has received a ministerial order granting all environmental approvals ...
Botswana President Mokgweetsi Masisi vowed to protect the country’s interests, including its 15% stake in diamond giant ...
Europe’s largest copper producer Aurubis AG reported first-half core profit above expectations on Wednesday, helped by ...
No comments have been posted yet ...