Name and Location
Winchester magnesite direct shipping ore project, Northern Territory, Australia.

Client
Korab Resources.

Project Description
The Winchester deposit is a shallow, flat-laying body covered by up to 5 m of soil overburden. The prefeasibility study (PFS) on the project proposes a low-cost, opencut mining operation.

The PFS evaluated two variants – bench-bench and staged development. The study was based on a mine that could operate at various capacities: 250 000 t/y of run-of-mine (RoM), 500 000 t/y RoM and 1 000 000 t/y RoM.

Under the staged development variant, the capital costs will be slightly reduced, but the operating costs will not change. However, the difference in capital costs estimates between the two development variants is negligible and was disregarded for this study.

Current estimated indicated mineral resources at Winchester underpinning this PFS are 12.2 million tonnes grading 43.1% of magnesium oxide on average.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital costs of the Winchester project have been estimated at $4-million, including a 30% contingency.

The capital cost has been estimated for the development of openpit operations with required access roads, diversion channels, waste and water management and site infrastructure.

Duration
Not stated.

Latest Developments
Korab has been in discussions with unrelated parties regarding the funding for the development of this project. The company will now proactively pursue these discussions with interested parties.

Key Contracts and Suppliers
Not Stated.

On Budget and on Time?
Not Stated.

Contact Details for Project Information
Korab Resources executive chairperson Australia Andrej K Karpinski, tel +61 8 9474 6166.