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PolarX to invest in more drilling

17th October 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A scoping study for the Alaska Range copper/gold project, in the US, has proven positive for ASX-listed PolarX, with the company saying the study results justified additional investment on drilling to increase the mineral resource base.

The scoping study is based on the sequential mining of the Zackly and Caribou Dome deposits, using one plant modified for each. Mining will start underground at Zackly and at Caribou Dome would start as a shallow, high-grade openpit prior to moving underground.

The scoping study estimated that processing would occur at a rate of 600 000 t/y, over six-and-a-half years of mine life, generating $812-million in revenue, $322-million in net cash flows and $37-million in average annual free cash flows.

The scoping study also estimated that PolarX would need to invest $111-million in project development, with the payback period estimated at just over two years.

The project’s net present value has been estimated at R72-million, pre-tax, and its internal rate of return at 26%.

PolarX told shareholders that the study demonstrated potential for significant upside in the net present value through additional resource extension at the two deposits, and planning is now under way for extension drilling programmes to start.

Additional metallurgical test work was also warranted and could deliver better copper recovery and concentrate grade, said PolarX.

Edited by Creamer Media Reporter

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