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Metallica Minerals Ltd.
Summary
| Project: | Urquhart | |
|---|---|---|
| Deposit: | Urquhart | |
| Location: | Australia | |
| Commodities: | Aluminium-Silica | |
| Date: | 9/12/2018 | |
| Report Code: | JORC | |
| Report Type: | Pre-Feasibility Study | |
| Project Stage: | Mine Development | |
| Report details: | 12-9-2018: Metallica Minerals Ltd. announces a Pre-Feasibility Study report for its Urquhart deposit at the Urquhart project. Updated PFS results incl. post tax NPV of A$33.7m (10%), IRR of 364%. Metallica Minerals Limited (ASX:MLM) (“Metallica”, or “the | |
| Resources: | (Reserve, P+P): 6.532Mt Direct Shipping Bauxite @ 52.7% Al2O3, 13.3% SiO2 | |
| CP/QP: | [Overall Report]: Stewart Lewis (IMC Mining Pty Ltd.) | |
| ABSTRACT: | Metallica Minerals Limited (ASX:MLM) (“Metallica”, or “the Company”) is pleased to announce the results of the updated Pre-Feasibility Study (Updated PFS) for the Company’s 50%-owned Urquhart Bauxite project (Urquhart), five kilometres southwest of Weipa on Queensland’s Cape York. The Updated PFS Base Case points to a potential revenue stream nearing A$390 million across 5.5 years of production, delivering a total operating margin (allowing for all costs including royalties) of approximately A$10.50 per tonne with payback of just 1.3 years from October 2018. The Updated PFS was independently prepared by Brisbane-based international consultancy, IMC Mining Pty Ltd (IMC), which also completed the JORC (2012) resources estimate for Urquhart (see ASX Release 14 November 2016). Industry leading independent bauxite analyst, CM Group has provided an updated USD price of bauxite on an as delivered basis (CFR Shandong, China). This differs from the 2016 PFS, which used a Free on Board (FOB) USD bauxite price. Since 2016 there has been a material increase in USD denominated shipping rates that has had a direct effect on the project. To a lesser extent changes in bauxite price forecasts and foreign exchange rates have also impacted Urquhart’s forecast revenue. The results of the Updated PFS are summarised in Table 1 below. Metallica’s Managing Director, Mr Simon Slesarewich: “We remain confident that Urquhart Bauxite will deliver value for shareholders and continues to display attractive returns despite shipping costs increasing by over US$5 per wet tonne. Utilising contractors to deliver the mining and having access to the nearby and operational Hey Point barge loading and transhipping facility will translate into a development that is low in capital intensity and can be brought into production rapidly. Previous marketing work by the Company and its experienced Marketing Agent has ensured that the well-known bauxite product to be produced at Urquhart Bauxite will be readily received by Chinese refiners.” | |
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