Maronan Metals said its Northwest Queensland silver-lead-copper-gold project is progressing from a Scoping Study toward a pre-feasibility study. The Scoping Study covered less than 25% of the global resource in the Starter Zone and outlined a 1.2 Mtpa operation with a 10-year mine life and approximately A$260 million of capital expenditure. It generated an NPV8 of A$377 million at a silver price of A$36/oz. The company estimates project NPV at about A$750 million at current spot silver prices, but this remains a company estimate subject to further resource definition, engineering and permitting.
A 40,000 m infill drilling program is nearly 25% complete, with about 10,000 m drilled. Maronan expects a resource update before the end of the financial year, followed by a PFS and its first ore reserve around the middle of next year. Metallurgical test work has returned lead and silver recoveries above 90%, with lead concentrate grading above 70% lead and containing at least 1,500 g/t silver. An exploration decline has been permitted, while the planned mining-lease application is targeted for year-end; the decline development itself is not yet fully funded.
