PERTH (miningweekly.com) – Phosphate rock producer is advancing plans for its Stage 1.5 expansion of its Ardmore phosphate mine, in Queensland.
The company previously announced that it had been investigating the Stage 1.5 project as an additional development stage with the potential to increase production in the near term, as well as to continue to provide a low cost, high return capital investment.
The Stage 1.5 project would target a 625 000 t/y production output by using existing facilities on site, as a step towards the Stage 2 capacity of 800 000 t/y of phosphate output.
Centrex on Wednesday told shareholders that the Stage 1.5 expansion was expected to result in 80% of the production contemplated in the 2021 Ardmore definitive feasibility study, which was based on an output of 800 000 t/y over a mine life of ten years, at only 40% of the A$78-million pre-production costs estimated in the study.
The Stage 1.5 expansion project is expected to cost A$31-million, including a A$5.3-million contingency.
“Stage 1.5 is a smart capital spend, achieving 80% of the DFS production target at 40% of the DFS capital cost. The resulting near term high production levels and its slow capital cost will help maximise shareholder returns,” said Centrex MD Robert Mencel.
Centrex has earmarked expenditure for drilling and metallurgical test work on the Northern deposit, and increased drilling density is expected to support the conversion of additional existing resource to reserves, extending the life-of-mine. Ongoing production of beneficiated product and sales will not be impacted by Stage 1.5 capital upgrades.
The company said on Wednesday that it will seek to fund Stage 1.5 via a combination of debt, equity and/or cashflow from sales. At this stage, the company intends to fund the majority via debt, unless circumstances change.