Name of the Project
Pyramid Lake gypsum project.

Location
Western Australia.

Client
Cohiba Minerals.

Project Description
The project entails the initial production of 50 000 t/y of gypsum, ramping up to 400 000 t/y.

The operation has a mine life of more than ten years, based on indicated and inferred resources.

The mine (essentially a quarry) will have a very simple layout, with the mining sequence being largely dictated by the quality of the blocks identified in the resource model. There will be no tailings or waste storage facility, with only oversize material from the screening plant being discarded by being placed back into the exhausted parts of the mine area.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 5% discount rate, of A$33.2-million and an internal rate of return of 104.7%, with a payback of less 2.5 years.

Value
Capital expenditure (capex) is estimated at A$1.2-million, with a further moderate capital injection of A$600 000 in Year 6 to accommodate plant and throughput expansion.

Duration
Not stated.

Latest Developments
The scoping study has suggested that a full feasibility study be undertaken to ensure that the proposed establishment and production costs for the Pyramid Lake gypsum project are robust and can support a mining lease application.

This study should determine the capex and operating expenditure costs for the production of the Grade 2, Grade1 and Premium gypsum products (refinement of current model).

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cohiba Minerals, tel +61 3 9692 7222, fax +61 3 9077 9233 or email admin@cohibaminerals.com.au.