Mar. 3 -- Venture Minerals Limited has published summary results from a newly completed pre-feasibility study on its Mt Lindsay tin-tungsten-magnetite project in northern Tasmania. Compared to a scoping study published last May, the planned scale and capital cost of the project is now slightly larger, and a 29% internal rate of return is forecast based on “conservative” assumptions that prices over the eight year life of the mine will be 20% lower than current spot prices. Total capital costs are estimated at A$162 million for a mainly open pit operation with an ore throughput of 1.3 million tpy. ITRI estimates that annual production capacity of tin-in-concentrates is some 3,700 tpy.
Venture Minerals Managing Director Hamish Halliday commented: “The successful completion of the prefeasibility study represents a major achievement for the Company and is a very important milestone in the development of the Mt Lindsay Project. “Following completion of the PFS, we can now commence a Bankable Feasibility Study as well as continuing to maintain an aggressive approach exploration. We are fully funded for the coming year with A$25 million in cash and currently have six drill rigs on site.”
Subject to the completion of the BFS and arrangement of financing, the mine could start up in 2013. The company has engaged Penfold Limited, a major player in the Chinese tin concentrates market, to assist in product marketing and sales.