PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Siviour graphite project, in South Australia, has estimated that the project could deliver some 117 000 t/y of graphite over a 30-year mine life.
Project developer Renascor Resources reported on Wednesday that the project would deliver 142 000 t/y of product over the first ten years of operation, based on the current maiden ore reserve of 45.2-million tonnes, grading 7.9% total graphitic carbon, for 3.6-million tonnes of contained graphite.
The PFS estimated that the project would require a capital investment of $99-million to support a plant throughput of 1.65-million tonnes a year, with cash costs estimated at $335/t.
Based on those parameters, the project was estimated to have a post-tax net present value (NPV) of $500-million and an internal rate of return (IRR) of 62%.
Renascor told shareholders that the PFS also considered a low-start up capital, staged development, which would see production average 22 800 t/y over the first three years of operation, before transitioning to a 129 000 t/y operation over the remainder of the project.
The staged development option would require an initial capital investment of $29-million, with the Stage 2 development expected to cost a further $91-million.
The staged development is expected to have a NPV of $407-million and an after-tax IRR of 47%.
“The PFS confirms Siviour’s potential as a high-margin graphite operation, with the ability to provide much needed globally competitive diversity of supply from the low sovereign risk jurisdiction of South Australia,” said Renascor MD David Christensen.
“Siviour offers high-quality, low-cost production that is competitive with any graphite development globally. Siviour also offers a hig- margin, low start-up capital option. As we now move to more advanced offtake and finance discussions, we believe these factors will be important in securing the funding necessary to advance into construction and operation.”
Renascor will now start work on the definitive feasibility study, with completion expected later this year, while also advancing offtake discussions with potential end-users.