PERTH (miningweekly.com) – An upgraded definitive feasibility study (DFS) into the Molyhil tungsten and molybdenum project, in the Northern Territory, has resulted in improved economics, owner Thor Mining said.

The updated DFS estimated a capital cost of A$69-million, with a finance requirement of $43-million, while the project’s net present value has been estimated at A$101-million, with an internal rate of return of 59%.

This compared with a projected capital cost of A$70-million as estimated in a 2015 feasibility study, where the net present value was estimated at A$67-million, and the internal rate of return at 44%.

The updated DFS estimated earnings before interest, taxes, depreciation and amortisation of A$245-million, with the project pay-back period estimated at less than 18 months, after the payment of royalties and taxation.

The project, which will have a mine life of seven years, will consist of a simple opencut mine producing 125 000 t/y of ore, and recovering some 8 583 t of tungsten and 3 133 t of molybdenum over the life of the project.

“Of particular note, the sole focus of this study is on the openpit operation outlined in the ore reserve, and does not account for what the board believe will be significant additional mine life generated from the potential underground mining operation and the additional ore potential from the nearby Bonya deposits, as previously announced,” said Thor executive chairperson Mick Billing.

“The company now has an updated and upgraded DFS, incorporating the work over recent years at Molyhil with which it can continue to engage with third parties who have expressed a specific interest in the project.”

Billing noted that the project was construction ready, subject to the submission of an acceptable mining management plan and the finalising of project level mine construction financing.

“Upon finalising the project level financing, the construction phase of Molyhil is estimated at 12 months.”

The company is now working to secure the balance of concentrate sales and finance for the project development, after which detailed engineering studies will be undertaken, along with the completion of the mine management plan.