Aim-listed Cadence Minerals has completed a capital expenditure optimisation programme at the Amapá iron-ore project, in Brazil, identifying significant savings in processing plant recommissioning, as well as an opportunity to increase production.
The optimisation study was conducted at a prefeasibility study (PFS) level and marks an important milestone in the company’s progress towards achieving cost-efficient and sustainable operations, it says in a statement issued on March 22.
In particular, the optimisation study has identified a 33%, or $63-million, saving in costs associated with the beneficiation plant at Amapá, as well as a possible increase in production of 4.8% to 5.5-million tonnes a year of iron-ore concentrate.
The capital requirement for the entire project is now in the bottom quartile of comparables at $58 per million tonnes of yearly capacity.
Cadence also plans to redesign the mine plan to reduce mining costs, together with its joint venture partner Pedra and Branca Alliance.
The revised mine plan and revised capital expenditure will form the basis of an amended economic assessment at PFS level.
Given that the optimisation study was completed ahead of schedule, Cadence does not anticipate any delays to the timeline of the project, even with additional work associated with optimising the mine plan to accommodate for increased production.
“We remain fully committed to advancing the development of the 67% iron-ore product flow sheet, which aligns with our vision for sustainable growth and value maximisation,” states CEO Kiran Morzaria.
At the end of September last year, Cadence had invested $12.1-million in the Amapá project, with its equity stake in the project standing at 32.6%.