JOHANNESBURG (miningweekly.com) – A project definition study of the Unicorn molybdenum, copper, silver and zinc project, in Victoria, has significantly improved the project definition and business case, ASX-listed Dart Mining reported on Wednesday.

The company started a 15-month study of the project in March last year, following the removal of the firm’s board.

“The project team’s efforts, experience and professionalism from March 2014 have not only rescued a project assigned to abandonment by the previous board, but bring it within striking distance of development reality,” said chairperson Bruce Paterson.

The project definition study, which brought together prefeasibility-study-level external and internal analyses and reports, found that Unicorn could be mined using conventional openpit methods with a processing plant near the pit. An average of 10-million tonnes a year would be mined over 20 years.

The study also established low mining waste-to-ore ratios and preconcentration after crushing, which resulted in improved plant feed grades, and further identified focused future drilling requirements and metallurgical testwork to improve economics further.

The project definition study had estimated an internal rate of return of 20%, a three-year payback period and initial capital expenditure of A$185-million, compared with the scoping study estimate of A$304-million.

Meanwhile, the company on Wednesday also announced it had launched an accelerated nonrenounceable one for two rights issue. The capital raising would involve the issuing of about 121.63-million shares to raise A$2.43-billion.

The proceeds of the equity raising would be used to market the Unicorn project information to long-term framework commodity consumers and investors; to continue to move the Unicorn project towards development status for a timely decision on financing and construction when the commodity cycle turned positive, and to market joint venture interests as farm-out packages in Dart’s exploration tenements and prospects.