PERTH (miningweekly.com) – The Sorby Hills base metals project, in Western Australia, could produce some 249 000 t of lead and 9.35-million ounces of silver a year, a prefeasibility study (PFS) has found.
The one-million-tonne-a-year operation would have an initial eight-year mine life, based on the current indicated resource, and would require a capital investment of A$95.4-million.
ASX-listed Pacifico Minerals on Tuesday said that the PFS estimated a pre-tax net present value of A$243-million and a pre-tax internal rate of return of 62%, with a pay-back period of 16 months.
“Following a substantial upgrade to the mineral resource estimate in early March 2019, the economic outcomes of this study are compelling and represent an important milestone towards the development of Sorby Hills,” said Pacifico MD Simon Noon.
“Our efforts are now firmly focused on completing phase 2 of the planned infill and expansion drilling programme and again upgrading the mineral resource estimate, and targeting an optimised PFS with higher throughput in the fourth quarter of this year, as well as advancing the definitive feasibility study work programmes that have already begun.”