Tando's SPD proves viable
PERTH (miningweekly.com) – A scoping study into ASX-listed Tando Resources’ Phase 1 SPD vanadium project, in South Africa, has demonstrated that the project is technically and financially viable.
The Phase 1 project is based on a 2.2-million-tonne-a-year standalone operation, which is expected to produce an average of 0.79-million tonnes a year of vanadium concentrate, over a 25-year mine life.
The scoping study has estimated a pre-production capital requirement of between $18.8-million and $120-million, with operating costs estimated at $11.7/t.
The life-of-mine earnings before interest, taxes, depreciation and amortization for the SPD project have been estimated at between $234-million and $431-million, with the net present value estimated at between $68-million and $138-million, and the pre-tax internal rate of return at between 48% and 86%.
“The scoping study confirms the potential for Phase 1 to be an early, low-cost starter operation generating strong margins of $17-million a year, with a short payback period of less than two years due to the high-grade nature of the mineralisation and the low capital cost requirements of $18-million,” said Tando MD Bill Oliver.
The scoping study is based on an indicated and inferred mineral resource of 612-million tonnes, grading 0.78% vanadium pentoxide.
Tando is currently working on binding offtake agreements with a number of interested parties, and following this, will evaluate a number of potential financing options for SPD.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation