Name of the Project
Bawdwin lead/silver project starter pit.

Location
The project is located in the Shan state of Myanmar and is strategically well positioned to access to some of the world’s largest smelters in China.

Project Owner/s
Myanmar Metals.

Project Description
A prefeasibility study (PFS) has determined that, at steady-state production, the starter pit will be the third-largest producing lead mine in the world and the tenth-largest producing silver mine in the world, as well as being a globally significant zinc producer.

Phase 1 of mining operations at Bawdwin is planned as a 13-year openpit mining operation concentrated on the central China lode
(starter pit).

About 24.7-million tonnes of mineralised material will be processed from the planned starter pit, representing 26% of the currently declared project mineral resources of 94.2-million tonnes, inclusive of mineral reserves. The project has a declared maiden Joint Ore Reserve Committee-compliant probable ore reserve of 18.4-million tonnes at 6.4% lead, 169 g/t silver and 3.4% zinc, representing 74% of the total production from the starter pit.

The conventional differential sulphide flotation processing facility will produce two concentrate products, a high-grade lead/silver concentrate and a zinc concentrate, at an average steady-state rate of 196 000 t/y and 93 000 t/y respectively. Run-of-mine waste rock will be stacked with filtered (dry) tailings in an engineered integrated waste landform located in valleys adjacent to the processing plant.

At steady state, two-million tonnes of mineralised material will be processed a year with average lead, silver and zinc grades of 6.4%, 168 g/t and 3.2% respectively.

Eighty-eight percent of the material processed in the starter pit is high grade fresh sulphide mineralisation with higher applied metallurgical recovery assumptions and concentrate grades.

Underground mining operations are expected to start in about Year 6 of the starter pit to access mineralised material in the Shan and Meingtha lodes, however, the underground mining operations have not been included in the physical or financial estimates in the PFS.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a precorporate tax net present value, at an 8% real discount rate, of $580-million and an internal rate of return of 30%, with a payback of four years.

Capital Expenditure
The project will require an investment of $267-million, with an additional contingency of $33-million.

Planned Start/End Date
The starter pit is scheduled to start in late 2021 after a 21-month construction period.

Latest Developments
The PFS clearly shows strong underlying project cash flows and valuation metrics for the starter pit from processing only 26% of the current total mineral resource estimate for the Bawdwin deposits.

Beyond the starter pit, which is the sole focus of the PFS, underground mining operations and the Shan and Meingtha lodes are in scoping study phase and a number of other targets and prospects have potential to materially add mine life and value to the Bawdwin mining operation.

Key Contracts and Suppliers
Valentis Services (site exploration, drilling supervision support and approvals) and subconsultant Titeline Drilling (reverse circulation and diamond hole drilling); Coffey/Valentis (environmental-, social-impact assessment); CSA Global (geology, resource estimation, geometallurgy, geotechnical studies, database management, mine design) and subconsultants GeoLogica (openpit geotechnical study) and E-Precision Laboratory (geotech specimen testing); Lycopodium (processing plant, infrastructure, PFS report, management of subconsultants) and subconsultants Orway Mineral Consultants (comminution circuit modelling); Townend Mineralogy (mineralogy testwork); MODA (mineralogical microscopy); ECG (Eower supply study); ALS Laboratories (metallurgical testwork); Knight Piésold (geotechnical design of the IWL and waste dump location study); Antrak Logistics (logistics) and McMahon Mining (mining contractor rates).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Myanmar Metals, tel +61 8 6147 8100 or email info@myanmarmetals.com.au.