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Hill End Gold Ltd.
Summary
| Project: | Yendon | |
|---|---|---|
| Deposit: | Yendon | |
| Location: | Australia | |
| Commodities: | Aluminium | |
| Date: | 6/14/2018 | |
| Report Code: | JORC | |
| Report Type: | Pre-Feasibility Study | |
| Project Stage: | Pursuing Feasibility Study | |
| Report details: | 14-6-2018: Hill End Gold Ltd. announces a Pre-Feasibility Study report for its Yendon deposit at the Yendon project. PFS results incl. pre-tax NPV of US $691.83M (10%), IRR of 34% and 38 yr LOM at the project. Hill End Gold Ltd (HEG) is pleased to announc | |
| Resources: | (Resource, M+I): 3.68Mt @ 34.68% Al2O3 at Yendon Kaolin | |
| CP/QP: | [Resources]: Rod Brown (SRK Consulting (Australasia) Pty Ltd.) | |
| ABSTRACT: | Hill End Gold Ltd (HEG) is pleased to announce that a Pre‐feasibility Study (PFS) of its Yendon High Purity Alumina Project (Yendon) in Victoria is technically and financially robust. The PFS demonstrated that Yendon delivers strong financial returns, underpinned by a low capital cost of $271 million on projected annual production of 8,000 tonnes of HPA grading 99.99% aluminium oxide. Production costs are expected to be extremely competitive at just $7,668 a tonne. This will ensure Yendon enjoys robust margins, approaching 70%, based on a conservative sale price of $25,200/t. The internal rate of return is forecast to be 34 per cent. Hill End believes the revenue assumptions contained in the PFS are conservative. This view is supported by the test work which showed that HPA produced from kaolin mined at Yendon comfortably exceeds the 99.99% alumina specification and pricing assumed in the PFS. The price of HPA rises as purity increases, meaning that revenue from HPA produced from Yendon may exceed that assumed in the PFS. HEG intends to conduct further test work on the HPA produced from Yendon to establish if a 99.999% (5N) specification can be achieved. Insights gained from test work undertaken for the PFS have provided confidence that the steps needed to produce 5N HPA can be incorporated in the process flow diagram for Yendon. In light of these outstanding results, Hill End will now commence planning for a Definitive Feasibility Study (DFS) on Yendon. Hill End Managing Director Martin McFarlane said, “The PFS showed Yendon was well‐placed to meet the growing demand for high purity alumina, including that from the lithium battery industry." “The outlook for the HPA market is very strong, with the rapid growth witnessed over the past decade expected to continue due to the solid outlook for LEDs and other markets for synthetic sapphire derived from HPA, as well as the booming market for lithium batteries,” Mr McFarlane said. “To satisfy the rapid growth forecast in HPA demand, new production capacity is required”. “The PFS shows Yendon is on track to help meet that demand with a high quality product produced at a low cost.” Mr McFarlane said “Hill End would now use the information derived from | |
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