PERTH (miningweekly.com) – ASX-listed Korab Resources has initiated an update to the prefeasibility study (PFS) of its Winchester magnesite project, in the Northern Territory, with the aim of incorporating the recent increase in global magnesium carbonate prices, potential changes to the mine lay-out and openpit contours, and new data from end-users and other parties.
A 2015 PFS estimated that the project would cost some A$4-million to develop based on a conceptual mine that could operate at various capacity levels, from a 250 000 t/y to a 500 000 t/y or one-million-tonne-a-year run-of-mine capacity.
The study also showed that the project had an aggregate mine-life earnings before interest, taxes, depreciation and amortization (Ebidta) potential of A$395-million, and a long-run annual Ebitda of A$32-million a year.
Korab on Friday said that recent discussions with several end-users of magnesium carbonate rock have provided the company with a significant amount of new and useful information, while the company has also been evaluating various options for the quarry layout, pit design and other aspects of the operation with a view to maximizing the early income stream while at the same time reducing capital costs.
The company has now started an updated PFS to assess what impact potential changes to these parameters would have on the economics of the Winchester project.