Name and Location
Mofe Creek iron-ore project, Liberia.

Client
Tawana Resources.

Project Description
A scoping study on the Mofe Creek project has delivered excellent technical and financial results, along with project design and development simplicity.

A scoping study has found that the project will have an initial mine life of 14 years.

The study has also identified an opportunity to fast-track the initial one-million-tonne-a-year to 2.5-million-tonne-a-year production scenario using existing infrastructure in Liberia, including a sealed road from the Gofolo mine to the Port of Monrovia and an existing deep-water port at Freeport-Monrovia. As the project expands, the Freeport capacity will be exceeded and alternative transshipment or shiploading facilities will be required.

The project development plan envisages a staged production ramp-up starting at one-million tonnes a year (Stage 1A) and then increasing production to 2.5-million tonnes a year (Stage 1B).

Net Present Value/Internal Rate of Return
The project has a net present value at 8% discounted cash flow, after royalties at 4.5% of $435-million. The pretax internal rate of return is estimated at 55.8%.

Value
The initial capital expenditure (capex) required for first production is estimated at $52.9-million, which is inclusive of a 20% contingency on capex.

The total capital cost required to achieve and sustain 2.5-million tonnes a year, including an independent haul road and a transshipment facility at the coast of Liberia, is estimated at $280-million.

This is inclusive of a 20% contingency on capex.

Duration
The timeline to initial production is 15 months from the approval of a mining licence.

Latest Developments
Tawana plans to immediately start a prefeasibility study on the project.

The will also advance discussions with potential strategic partners, offtakers, debt providers and financiers to fast-track the development of the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Tawana Resources, tel +61 8 9287 4333 or fax +61 8 9389 3199.