Woodlawn economics prove a hit for Heron
PERTH (miningweekly.com) – The Woodlawn zinc/copper project, in New South Wales, has been revealed to have a post-tax net present value of around A$300-million.
Project owner Heron Resources on Wednesday noted that a preliminary economic assessment (PEA) had also estimated that the project would have a post-tax internal rate of return of 46%.
Over the 11-year mine life, the Woodlawn project was expected to produce some 353 000 t of zinc, 77 000 t of copper, 112 000 t of lead, 8.9-million ounces of silver and a further 59 000 oz of gold.
C1 costs of $0.01/lb of zinc were expected to place the project in the lower half of the cost curve.
The PEA also estimated that the project would generate a net cash flow after tax of A$594-million.
“This PEA study confirms not only the economic viability of the Woodlawn project, which has the potential to deliver a long-term supply of zinc into a supply constrained market, but also the quality of this asset with a very competitive cost of production within the current market,” said Heron chairperson Craig Readhead.
“The project is underpinned by a revised, high-quality mineral resource, including the discovery of 2.8-million tonnes from recent drilling, and has achieved its aim of establishing a robust resource base on which to build a new operation.”
Readhead added that the PEA further demonstrated that the approach of co-treating the low-risk tailings resource with the high-grade underground resource could deliver a robust outcome, and a low-cost, long-life mining operation.
“We are now committed to advancing this project rapidly through to feasibility study stage.”
The feasibility would likely be completed by mid-2016.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
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
