PERTH (miningweekly.com) – A feasibility study into the Lucky Bay garnet project, in Western Australia, has estimated that the project could have a mine life of some 29 years, based on an ore reserve of 202-million tonnes, grading 5.4% heavy minerals.
ASX-listed Resource Development Group (RDG) told shareholders on Monday that the feasibility study estimated that the project could process some 3.35-million tonnes of ore a year, increasing to 6.7-million tonnes of ore by year three.
This equated to a base-case garnet production of some 130 000 t/y, increasing to some 300 000 t/y when the operation is expanded with the inclusion of a second wet concentrator plant, and the mining of higher grade ore.
The Phase 1 operation is expected to require a capital investment of A$60-million, with commissioning targeted for the first quarter of 2022. The Phase 2 operation would require a further A$31.2-million investment.
The feasibility study estimated a net present value of A$483-million and an internal rate of return of 48%.
“This is a significant milestone for the project and confirms the value that this project creates for RDG. With a net present value of almost half-a-billion dollars and an internal rate of return of 48%, the project’s financial metrics are very robust,” said RDG MD Andrew Ellison.
“We have now confirmed our optimised mining schedule and look forward to bringing the project into production towards the end of the first quarter next year.”