Name of the Project
Admiral Bay zinc/lead/silver project.

Location
The project is located in the north-west of Australia.

Client
Metalicity.

Project Description
To derisk Admiral Bay through to a decision to mine, the prefeasibility study (PFS) on the project is being undertaken in two stages.

The direct shipping ore (DSO) starter mine concept PFS Stage 1 has confirmed that Admiral Bay has the potential to support a capital-efficient, long-life and low-cost zinc/lead/silver operation.

The study comprises the technical and economic modelling of two conceptual alternatives and a comparison of these to the base case, three-million- to five-million-tonne-a-year concentrate model over a life-of-mine of 21 years. 

The primary purpose of the study is to reduce the overall capital intensity of the project.

The first option comprises a standalone DSO operation using ore-sorting technology to increase the metal content in the ore to a commercial DSO product. The second option combines the DSO and concentrate models into one project.

The study indicates that the concept of a standalone DSO operation would be feasible with current project knowledge and testwork.

The combined DSO and concentrate model, meanwhile, also preserves expansion optionality to a larger concentrate model – by starting with minimal infrastructure, focusing on the high-grade zone and achieving payback on DSO capital invested – and is feasible.

This development pathway also delivers a lower technical risk and capital-intensity profile, as only one-third of the capital would initially be required. 

Any operational uncertainty could be quantified during the development and operation of the DSO concept.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
Metalicity will now undertake work on PFS Stage 2, including continued testwork to confirm the ore-sorting rejection rates expected for DSO, additional resource drilling, evaluating the feasibility of a concentrator plant to increase the available tonnage to be mined after DSO, the staged expansion approach from 500 000 t/y to three-million tonnes a year and mine design aspects.

Metalicity will also undertake a global roadshow to present the PFS Stage 1 results and continue advanced discussions with potential joint venture partners to fund the project to a decision to mine, with a range of funding options available.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
To stated.

Contact Details for Project Information
Metalicity, tel +61 8 9324 1053, fax +61 8 9324 3366 or email info@metalicity.com.au.