PERTH (miningweekly.com) – An independent review into the Watershed tungsten project, in far north Queensland, has reduced the expected capital costs from A$172-million to A$105.8-million, ASX-listed Vital Metals reported on Thursday.
The review considered proposed modifications to the plant design, layout, site access, power supply, accommodation and mining capital, and obtained updated quotations from local and engineering, procurement and construction contractors.
The Watershed project is being developed into a 2.5-million-tonne-a-year operation, with a mine life of ten years. The project is estimated to have a post-tax net present value of A$150-million and an internal rate of return of 32%.
Vital said on Thursday that the project was a development-ready opportunity that is permitted with granted mining leases and an environmental authority for an openpit development.