Mindoro Resources (TSXV: MIO; ASX: MDO; Frankfurt:WKN 906167) has received positive results from key development studies on the Agata Nickel Project in the Philippines, in which the company has a 75% economic interest.
The Stage 1 Scoping Study indicates improved economics for direct shipping ore (DSO) production and the potential to produce a high-value, upgraded, nickeliron concentrate.
The Stage 2 hydrometallurgical project Pre-feasibility Study (PFS) confirms a low operating cost of US$2.60/lb nickel, a 20-year project with a post-tax NPV of US$380 million and IRR of 14% assuming US$10/lb nickel, 8% discount rate, including estimate contingency of 14% but excluding project contingency.
Importantly, the company now plans to pursue feasibility and permitting of Stage 1 DSO to generate near term cash-flow.
This involves pilot scale thermal-upgrading prior to advancing hydrometallurgical processing options to pilot-scale testing and feasibility study.
In order to progress these options the company is seeking a strategic partner and has appointed key advisor Deloitte Corporate Finance Pty Ltd to assist in securing one.
Jon Dugdale, Mindoro's president and CEO, said "these studies confirm that Agata is a robust, 20-year project with key strategic advantages that allow us to pursue a lower risk path to near term cash-flow production, as well as demonstrating the value of the low-operating cost downstream processing developments.”
The marketing section of the Stage 1 Scoping Study highlighted improved pricing for Mindoro’s potential DSO products, including the emergence of the high-iron (>48% Fe) laterite as an iron-ore substitute.
The improved market and pricing should result in improved DSO economics relative to the preliminary economic assessment (PEA) released March 2011, providing a pathway to near term cash-flow.
Scoping Study
The Scoping Study into production of thermally-upgraded products from the Agata resource indicates that, for a capital cost of US$88 million, 600,000 tonnes per annum (tpa) of thermally upgraded high-iron sinter product could be produced at a cash operating cost of approximately US$32 per tonne of upgraded product (excluding mining costs).
The study also highlighted potential to produce a high-value nickel-iron concentrate of 3-4% Ni, >65% Fe via magnetic separation - a possible nickel-pig-iron substitute.
The Stage 1 Scoping Study indicates improved economics for direct shipping ore (DSO) production and the potential to produce a high-value, upgraded, nickeliron concentrate.
The Stage 2 hydrometallurgical project Pre-feasibility Study (PFS) confirms a low operating cost of US$2.60/lb nickel, a 20-year project with a post-tax NPV of US$380 million and IRR of 14% assuming US$10/lb nickel, 8% discount rate, including estimate contingency of 14% but excluding project contingency.
Importantly, the company now plans to pursue feasibility and permitting of Stage 1 DSO to generate near term cash-flow.
This involves pilot scale thermal-upgrading prior to advancing hydrometallurgical processing options to pilot-scale testing and feasibility study.
In order to progress these options the company is seeking a strategic partner and has appointed key advisor Deloitte Corporate Finance Pty Ltd to assist in securing one.
Jon Dugdale, Mindoro's president and CEO, said "these studies confirm that Agata is a robust, 20-year project with key strategic advantages that allow us to pursue a lower risk path to near term cash-flow production, as well as demonstrating the value of the low-operating cost downstream processing developments.”
The marketing section of the Stage 1 Scoping Study highlighted improved pricing for Mindoro’s potential DSO products, including the emergence of the high-iron (>48% Fe) laterite as an iron-ore substitute.
The improved market and pricing should result in improved DSO economics relative to the preliminary economic assessment (PEA) released March 2011, providing a pathway to near term cash-flow.
Scoping Study
The Scoping Study into production of thermally-upgraded products from the Agata resource indicates that, for a capital cost of US$88 million, 600,000 tonnes per annum (tpa) of thermally upgraded high-iron sinter product could be produced at a cash operating cost of approximately US$32 per tonne of upgraded product (excluding mining costs).
The study also highlighted potential to produce a high-value nickel-iron concentrate of 3-4% Ni, >65% Fe via magnetic separation - a possible nickel-pig-iron substitute.
Pre-feasibility Study
The PFS for the hydrometallurgical processing project confirms a low operating cost, long-life, high-value project that includes:
- Mineral Reserve: 33.7 million tonnes at 1.03% nickel, 0.05% cobalt;
- Minimum 20 year mine life, 17,200 Ni tpa in mixed hydroxide product (38.2% Ni, 2% Co, wet basis);
- Initial capital, including an overall 14% estimate contingency, no project contingency: $940 million;
- Cash operating cost including cobalt and power generation credit of $2.60/ lb of nickel; and
- Post-tax NPV of $380 million at an 8% discount rate and nickel price of $10/lb.
The PFS for the hydrometallurgical processing project confirms a low operating cost, long-life, high-value project that includes:
- Mineral Reserve: 33.7 million tonnes at 1.03% nickel, 0.05% cobalt;
- Minimum 20 year mine life, 17,200 Ni tpa in mixed hydroxide product (38.2% Ni, 2% Co, wet basis);
- Initial capital, including an overall 14% estimate contingency, no project contingency: $940 million;
- Cash operating cost including cobalt and power generation credit of $2.60/ lb of nickel; and
- Post-tax NPV of $380 million at an 8% discount rate and nickel price of $10/lb.
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