PERTH (miningweekly.com) – A concept study by ASX-listed Nemex Resources on its Télimélé iron project, in Guinea, has confirmed the economic viability of the project.
“We are delighted with the results of the concept study, that suggests that Nemex could develop a profitable iron-ore operation using existing infrastructure where possible,” said Nemex MD Peter Turner.
“We envisage a start-up operation of 2.5-million tons a year of direct shipping ore (DSO) product with a total operational cost in the region of between $50/t and $60/t free-on-board, and low start-up capital costs.”
The concept study has identified a development strategy that involved mining near-surface DSO, followed by on-site crushing and screening to produce a lump product that would be hauled by road to a purpose-built quay.
Capital cost for the Télimélé project has been estimated at between $60-million and $130-million, depending on whether the processing facility and trans-shipment operations were owned or contracted.
The operation could generate between $300-million and $400-million in cash flow over its ten-year life-of-mine, the study estimated.
Nemex would now focus on the exploration potential of the Télimélé licence and applications, with the objective of increasing the current resource inventory, as well as continuing with more detailed feasibility work and a metallurgical testwork programme to identify cost savings and optimise the project economics.
“Our attention is now focused on the regional exploration potential of the Télimélé licence and applications to host a regional exploration target of between 50-million and 100-million tons, at between 50% and 60% iron, that will be required to increase a 2.5-million-ton-a-year DSO operation to a 5-million or 6.25-million ton a year DSO operation,” said Turner.