Marengo delays FS results, looks for new power partner
PERTH (miningweekly.com) – ASX- and TSX-listed Marengo Mining has been forced to consider alternate sources of power for its proposed Yandera copper/molybdenum/gold project, in Papua New Guinea, after the preferred third-party supplier decided to withdraw from the supply agreement.
The miner said on Friday that more technical work on the project would now be conducted before a final feasibility study could be released.
Company president and CEO Les Emery warned that the third-party power supplier’s withdrawal had resulted in an unexpected cost escalation, which would negatively impact on the current rate of economic return.
“Accordingly, we have decided to defer completion of work in relation to a feasibility study and undertake a focused optimisation programme. We are confident that this work has the potential to make substantial improvements to the project, that could deliver lasting benefits to all stakeholders,” said Emery.
The review would look at optimised throughput rates, a deep-sea tailings placement, and an optimised mine plan.
Meanwhile, Marengo said that the company had already launched high-level discussions with the state government regarding other potential power supply options for the Yandera project.
Capital costs for the project have initially been estimated at between $1.7-billion and $1.85-billion, with the company hoping to have complete the feasibility study by March.
Early indications point to the Yandera project being able to sustain a throughput rate of 30-million tons a year.
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