PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Bidaminna mineral sands project, in Western Australia, has estimated a capital cost of A$194-million.
ASX-listed Image Resources on Tuesday said that the project was expected to produce 2.1-million tonnes of total heavy mineral concentrates over a forecast mine life of 10.5 years, at a yearly production rate of 207 000 t/y.
The PFS was based on a processing rate of 11.8-million tonnes a year, and a 123-million-tonne probable ore reserve, containing 2.2-million tonnes of heavy minerals. The study estimated a pre-tax net present value of A$192-million and an internal rate of return of 28%, with earnings before interest, taxes, depreciation and amortisation estimated at A$379-million.
Image told shareholders on Tuesday that based on the results of the PFS, the company would immediately proceed to a definitive feasibility study (DFS), which would include capital and operating cost optimisation steps, as well as the inclusion of a mineral separation plant which was currently under independent feasibility study.
The mineral separation plant will likely be located at the current Boonanarring operation to take advantage of the existing installed infrastructure of water, power, roads and civils as well as established service facilities and some offices.
The DFS is also likely to include the addition of a significant value-adding step of converting Bidaminna ilmenite into synthetic rutile, Image said. Synthetic rutile production testing has been commissioned and will involve the use of a fluidized bed reactor and hydrogen as the reductant.
Furthermore, Image said that the company was also investigating the production of green hydrogen from the hydrolysis of water using its existing solar farm at Boonanarring.