Name and Location
Molyhil tungsten project, Northern Territory, Australia.

Client
Thor Mining.

Project Description
The upgraded feasibility study on Molyhil envisages mining using conventional opencut, as well as contract drill and blast methods, followed by owner-operated excavation and haulage.

The resource estimate extends below the level of the opencut ore reserve used in this study, allowing for the project life to be extended, either by deepening the openpit or by using underground mining methods depending upon subsequent costs and metal prices.

Mineral processing will involve:
• two-stage crushing to −55 mm;
• X-ray ore sorting at −55 mm to +25 mm and −25 mm to +10mm;
• tertiary crushing;
• two-stage grinding using a rod mill, followed by a ball mill;
• a three-stage flotation circuit – molybdenum, sulphide and scheelite flotation; and
• concentrate dressing.

The revised process flowsheet involves replacing the previous scheelite gravity recovery method with flotation, which has achieved substantial improvements in economic recovery.

It has also been successful in reducing the levels of some deleterious elements in final concentrate, compared with the original circuit. The scheelite concentrate dressing process, which follows the flotation step, has been tested, but is not yet optimised. It is expected that this optimisation process will be completed during the detailed design phase.

Net Present Value/Internal Rate of Return
The upgraded feasibility study estimates an all equity net present value of A$67-million with an internal rate of return of 44%, after taxation and royalty payments, with a payback period of 18 months after payment of royalties and taxation.

Value
Capital expenditure of A$70-million.

Duration
Not stated.

Latest Developments
The next steps for the Molyhil project involve securing the balance of concentrate sales (offtake) agreements and finance for project development, after which detailed engineering studies, along with the completion of the mine management plan and on-site civil works, will start in preparation for mine and process plant construction, as well as development.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Thor Mining, tel +61 8 7324 1935, fax +61 8 8351 5169 or email corporate@thormining.com.