Name of the Project
Mount Peake vanadium/titanium/iron project.

Location
Northern Territory, Australia.

Project Owner/s
Tivan, formerly TNG.

Project Description
The Mt Peake mine site will involve mining the titanomagnetite ore and recovering the magnetite in a concentrate through a beneficiation process.

The company and its advisers have selected a development strategy based on an initial production rate of two-million tonnes a year of ore throughput at the beneficiation plant, corresponding to 100 000 t/y of titanium oxide pigment through the proposed TIVAN processing plant. At a later date, after the financial completion of the construction and operation of the two-million-tonne-a-year plant, Tivan may consider the option to expand production capacity.

Previous feasibility studies were conducted using three-million tonnes a year of run-of-mine (RoM) production capacity during an initial production stage and increasing capacity to six-million tonnes a year of RoM by expanding the plant after four years of production.

Under the new mining schedule, the life-of-mine (LoM) has been extended to 37 years, from the previously planned 20-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated pretax net present value, at an 8% discount rate, is estimated at A$2.8-billion, with an internal rate of return of 33% and a payback of 2.8 years.

Capital Expenditure
Preproduction capex is estimated at A$824-million.

Planned Start/End Date
Not stated.

Latest Developments
Tivan has indicated that while Mount Peake remains a key asset, it is now expected to play a refocused facilitation role in the commercialisation of the company’s Speewah vanadium/titanium/iron project and the Tivan mineral processing technology by providing initial ore samples. These samples will be used at the planned Tivan pilot plant project, in Darwin.

Development planning work will, therefore, be limited for Mount Peake, at least the short term. Given the priority focus on Speewah, the board has decided to retain the main mineral lease (ML) over the Mount Peake deposit (ML 28431), but to relinquish the ancillary mineral leases ML29855 (processing), ML29856 (camp and airstrip) and ML30686 (rail siding), and the two access authorities (AA) of AA31105 (haul road) and AA32037 (borefield and pipeline), previously granted to support the Mount Peake development.

There are significant ongoing administrative and access costs for the company associated with retaining these ancillary mineral leases and access authorities. The board, therefore, believes it is prudent to relinquish this ancillary tenure and significantly reduce holdings costs for the company.

Tivan can reapply for the ancillary mineral leases and access authorities if and when required.

Key Contracts, Suppliers and Consultants
Snowden Mining Industry Consultants (revised mining strategy); Como Engineering (beneficiation plant – recoveries, operating expenditure and capex); McMahon Services (infrastructure – operating and capital expenditure); SMS (process plant flowsheets); METS Engineering (process plant construction and operating expenditure); and Clough (lead engineering and the preferred engineering, procurement and construction contractor).

Contact Details for Project Information
Tivan, tel +61 8 9327 0900 or email engagement@tivan.com.au.