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PERTH (miningweekly.com) – Mineral sands hopeful MZI Resources on Thursday reported that the net present value (NPV) of its flagship Keysbrook project, near Perth, Western Australia, could be significantly increased to about A$153-million.
The company noted that the current NPV was estimated at A$57-million, based on a mineral resource of 78.9-million tonnes, grading 2.5% heavy minerals, and an ore reserve of 26-million tonnes, at 2.6%.
However, MZI pointed out that if the company was successful in converting its mineral resource to ore reserve, and obtaining the necessary approvals to access further mining areas to increase the project life to more than 15 years, the project’s NPV could be increased substantially.
The project was currently slated to produce 91 000 t/y of product from 110 000 t of dry heavy mineral concentrate, over a five-and-a-half-year mine life. The project was expected to require a capital investment of A$61.9-million, while operating costs have been estimated at A$422/t of product.
“The Keysbrook project has been progressing while the company has gone about completing the financing process,” said CEO Trevor Matthews.
“We are now at a point where we can confidently proceed with the Keysbrook development with an improved construction contracting strategy, defined commercial arrangement with stronger local relationships, and greater upside for shareholders once operations commence.”
Once in operation, MZI would apply for approvals to access further mining areas surrounding the Keysbrook project.
MZI is fully funded for the construction of Keysbrook, and has already secured a number of offtake partners for the project, including with shareholder Tricoastal.