ASX-listed Venture Minerals has released details of a new scoping study for the Mt Lindsay polymetallic tin/tungsten project in Tasmania. The new study is based on a slimmed down scale of operation compared to the original study released by the company in June 2009, focusing on higher grade sections of the orebody and halving capital spending.
"The discovery of broad, near-surface, high-grade tin and tungsten mineralisation, within both the Main and No 2 skarns, has dramatically changed the profile of the project, allowing the company to focus on a high-grade, high-margin mining operation," the company said in a statement. Previously magnetite (iron ore) was seen as a major co-product, but in the current version it is expected to account for less than 25% of revenues.
The company is now planning an operation mining one million tones of ore a year, with a capital expenditure of A$130 million. Based on an assumed 50: 50 debt:equity ratio, the project is expected to generate an annual cashflow of A$80 million and an internal rate of return of 55%. Venture will now commence a pre-feasibility study and is continuing an active exploration drilling programme.