PERTH (miningweekly.com) – A preliminary economic evaluation of the Taronga tin project, in New South Wales, has given project developer AusNiCo incentive to undertake a preliminary feasibility study on the project.
The preliminary cost estimate has found that the Taronga plant could be developed at a capital cost of A$95-million, based on a 3.7-million-ton-a-year run-rate, with operating costs estimated at A$7.24/t.
Assuming only tin revenues, the project could have a potential cash flow of some A$13.08/t, averaged over an estimated 12- to 13-year life-of-mine.
AusNiCo said on Wednesday that following the positive results, the company’s board had approved the immediate start of an updated prefeasibility study, to replace the preliminary feasibility study conducted by previous owner Newmont between 1978 and 1983.
The Taronga tin project is ranked the eleventh-largest undeveloped hard-rock tin project globally, and has a historic resource of some 46.7-million tons, containing 68 000 t of tin.
The project also contains significant copper and silver resource, as well as other minerals, which offers possible by-product potential. Work has now started to determine the potential value of the by-product credits.