https://www.miningweekly.com

Myanmar Metals outlines plan for Bawdwin starter pit

6th May 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – A prefeasibility study (PFS) into a Phase 1 starter pit at the Bawdwin polymetallic mine, in Myanmar, has revealed that it will be the world’s third-largest producing lead mine and the tenth largest silver mine, as well as being a significant zinc producer.

ASX-listed Myanmar Metals on Monday reported that the Phase 1 operation would have a mine life of 13 years, processing some two-million tonnes a year of ore to produce 118 000 t/y of lead-in-concentrate, more than 10-million ounces of silver-in-concentrate and 49 000 t/y of zinc-in-concentrate.

The PFS estimated a capital cost of $267-million, with operating costs estimated at $108/t processed. The study calculated a net present value of $580-million for the Phase 1 starter pit, and an internal rate of return of 30%, with a pay-back period of four years.

“Bawdwin’s mineral reserve and mineral resources underpin a very long life mining operation. The PFS represents our plan for Phase 1 of mining operations and this phase of life-of-mine infrastructure is built and paid for,” said Myanmar chairperson and CEO John Lamb.

“With the infrastructure paid for in Phase 1, it is clear that future mining operations, including the first two underground mines now under scoping study, have potential to be very value accretive.”

The starter pit operations would start in late 2021, after a 21-month construction period, with underground mining operations likely to start around year six of the starter pit. The underground operations have not been included in the PFS estimates.

Furthermore, the production of a copper concentrate product was not contemplated in the PFS, and copper has not been modelled as a payable metal in the lead/silver or zinc concentrate products.

Myanmar said that the mining, separate stockpiling and processing of copper-rich material would allow production of a copper concentrate product at the processing site, but noted that further resource drilling would be required to add to Bawdwin’s existing inferred copper mineral resource of 4.4-million tonnes at 3% copper, 5.2% lead, 178 g/t silver and 2.6% zinc, to support the production of a copper concentrate.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION