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Mt Peake economics improve - TNG

29th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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SYDNEY (miningweekly.com) – Vanadium developer TNG on Wednesday reported that its Mount Peake project’s economics have improved as its definitive feasibility study (DFS) nears completion.

TNG noted that metallurgical optimisation work had reduced the forecast operating costs by A$20/t, or by some A$50-million a year, compared with the prefeasibility study (PFS) findings.

MD Paul Burton said that the early results on the PFS met or exceeded expectations.

“The identification of significantly lower operating costs, up to A$50-million a year lower than previously expected, from metallurgical optimisation testwork is a very pleasing early breakthrough.”

Burton noted that further optimisation of capital and operating costs would remain a key focus for TNG in the coming months.

“The recent moves in the Australian currency are also a big plus for the current view of the economics of the project, given that all of our previous studies were based on an exchange rate at parity with the US dollar,” he added.

Burton said that while TNG did not place too much emphasis on factors such as exchange rates, which were beyond the company’s control, the medium-term outlook for the currency could mean that the Mount Peake project economics looked better as the company moved closer towards financing and development, assuming the Australian dollar continued to depreciate against the US dollar.

TNG was targeting completion of the DFS for the fourth quarter of the year, with construction of the project to start in 2014 and production and exports proposed for 2015.

The next programme of work would involve understanding metallurgical variability, spatially and at depth, with respect to magnetic and leaching characteristics, followed by magnetic separation of a bulk sample for the definitive pilot plant trial, which was scheduled for the next quarter.

Edited by Creamer Media Reporter

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