Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed junior NSL Consolidated has announced a two-phase plan for its dry beneficiation plant and to start processing stockpiles at its AP23 iron-ore tenements, in India.
The first phase of the operation would see NSL transport about 200 000 t of low-grade existing stockpiles at its AP23 tenement to the Kurnool stockyard. The material will be processed through the existing NSL plant, which has been under care and maintenance.
NSL said it would be able to generate sales and cash flow from the first-phase operations within three months. The existing stockpiles were expected to result in about 7 000 t/m of ore sales, generating free cash of around A$200 000 a month.
NSL has earmarked the construction of a standalone dry separation plant at AP23, some six months following the restart of operations. The standalone plant would continue processing on-site material amenable to the dry separation process.
The junior has also identified a number of similar assets within trucking distance to the existing plant site. NSL has completed preliminary geological and legal due diligence on these projects and has engaged in discussions with the owners of the project.
The company said that the acquisition of these assets could significantly increase the production rate and profitability of the business.
The second phase of the operation would see the introduction of a wet beneficiation plant at the existing stockyard, which would be fed with material from NSL’s Kuja and Mangal mines.
It was anticipated that the construction and the commissioning of the wet beneficiation plant would start within 12 months after restarting the Phase 1 operations.
The wet beneficiation plant was expected to have a capacity of about 200 000 t/y iron-ore fines, with grades of between 58% and 62% iron.
All approvals for the construction and the operation of the wet beneficiation plant were in place.
NSL had estimated an exploration target of between 38-million tonnes and 95-million tonnes of iron mineralisation, with grades of between 20% to 55% iron, which would be amenable to beneficiation using the existing plant located at the stockyard.