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PERTH (miningweekly.com) – Scoping study into ASX-listed Fertoz’s Wapiti phosphate project, in British Columbia, has proven the project to be economically viable, the ASX-listed company reported on Thursday.
The study estimated that a capital spend of C$2.7-million would be required to develop Stage 1 of the project, which would access resources from a 7-m-deep openpit to deliver 361 000 t of phosphate during an initial seven-year mine life.
Stage 2 production would extend the project to 19 m below the surface, and would deliver an additional 600 000 t of phosphate, while Stage 3 would extend the openpit to 31 m below the surface and deliver 375 000 t of phosphate.
The project was expected to have a mine life of 20 years.
“The scoping study has been specifically designed to minimise the upfront capital expenditure and achieve near-term positive cash flow with a shallow 7-m-deep openpit design for an initial seven years of the project,” said Fertoz MD Les Szonyi.
“With fertiliser sales well under way through our FertAg joint venture in Australia, and the likelihood of near-term commercial production in North America, Fertoz continues to establish its credentials as an emerging agribusiness.”
The scoping study estimated that the Wapiti project would deliver a post-tax net present value of about C$20.1-million and a post-tax unlevered internal rate of return of 82.4%.
First production has been targeted for 2016, and the project was expected to ramp up to Stage 3 production of 75 000 t/y by 2018.
Fertoz reported that it was now progressing the final permit approvals for the project and was conducting commercial discussions with potential offtake partners.
Growth options for Wapiti were also being assessed beyond the scoping study.