Australian strategic metals company TNG Limited (ASX: TNG) is pleased to advise that it has completed an updated Feasibility Study (FS) and Financial Model for its flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory.
The results of the FS reconfirm and enhance the outcomes reported in the Definitive Feasibility Study (DFS) completed in 2015 (see ASX Announcement 31 July 2015). The updated results underline the Project’s strong economic and technical fundamentals are summarised in Table 1 below.
The updated FS has achieved a new pre-production Capital Expenditure (CAPEX) of A$853 million representing a significant decrease of A$117 million from the 2015 DFS CAPEX of A$970 million, due primarily to the optimisations achieved during the past 18 months. The financial model has shown an increase in the Project’s pre-tax internal rate of return (IRR) to 44% (up from 41%) on with only a moderate increase in forecast Operating Expenditure (OPEX) from A$167 to a$185 per tonne of ore processed2 and a reduced payback period of 3 years.
TNG’s Managing Director, Paul Burton, said: “This marks the culmination of a vast body of work completed over the past 18 months in conjunction with our strategic development partner, SMS Group, Como Engineers and METS. This work has also included substantial additional variability test work overseen by Como Engineers in Perth on the TIVAN® flowsheet and mine site beneficiation flowsheet, a number of important enhancements to the TIVANR flowsheet from work undertaken by the SMS Group, and further technical de-risking measures.”
“The outcomes reinforce the robust business case for the Mount Peake Project and against the backdrop of a much stronger commodity environment, the updated Feasibility Study sets the stage for us to move ahead and secure an attractive and competitive project funding package”.
“Subject to securing a suitable funding package, the Board will target a Final Investment Decision to commence development of one of the world’s most important new strategic metals projects at a very opportune point in the global commodity cycle.”
The 2015 DFS had shown areas where further de-risking was achievable and possible operating equipment improvements could be attained.
TNG engaged its team of professional engineering, metallurgical, mining, marketing and infrastructure groups for the completion of the updated FS. The study focussed on two key areas of the proposed operation – mine site beneficiation for concentrate production and the TIVAN® process plant for extraction of commodities from the concentrate.
The resulting updated operating cashflow model was compiled by Snowden Mining Industry Consultants (Snowden) based on contributions as follows:
Mining OPEX and CAPEX Snowden
Concentrator OPEX and CAPEX Como Engineers
Logistics OPEX McMahon Services
Process Plant Equipment CAPEX SMS Group
Process Plant Construction and OPEX METS
Mine Site Concentrator and flowsheet
An extensive metallurgical test work program involving CSIRO (Perth) and Nagrom Laboratories (Perth) was coordinated by Como Engineers. The testwork focussed on meeting the stringent process plant feedstock specifications provided by SMS Group (SMS). These specifications were achieved and the concentrator flowsheet was optimised and finalised by Como Engineers (see Figure 1 below).