PERTH (miningweekly.com) – An economic analysis of the Dolphin tungsten mine, in Tasmania, has estimated that the project would cost some A$65-million to bring into development.
ASX-listed King Island Scheelite on Tuesday reported that based on the currently planned opencut operation, which is projected to produce some 20 t/y of tungsten over an eight year mine life, would have a net present value of some A$153-million and an internal rate of return of 46%, with a capital pay-back period of just under three years.
King Island Scheelite CEO Johann Jacobs noted that the indicative economics of the Dolphin project reiterated the opinion that the ASX-listed junior had chosen the correct project to develop, with the right commodity in the right place and time.
“Having recently secured the first of what we anticipate to be several multi-year offtake agreements, and with flexibility in the operating site, adjacent port links and a supportive local community, we now look forward to achieving frequent operational milestones as we proceed to tungsten production anticipated in 2020,” Jacobs said.