ASX-listed junior Myanmar Metals has unveiled the results of a scoping study for the Bawdwin polymetallic mine, in Myanmar, demonstrating the viability of developing a 13-year “starter pit” that will fund the life-of-mine infrastructure.
Based on the indicated and inferred resources from the China lode of Bawdwin, the CSA Global-prepared scoping study demonstrates the technical and financial viability of developing the China pit, which will be followed by three pits on the Bawdwin concession and a long-life underground mining operation.
Economic estimates from the China pit scoping study are underpinned by 21-million tonnes of mineable material, representing only 26% of total project resources.
“The role of a starter pit is to provide an early cash flow to fund life-of-mine infrastructure and the development of a pipeline of future mines. As a result, the economics of the China pit bear a majority of the capital expenditure required for the full development of the Bawdwin province, including: processing and flotation facilities, a tailings facility, the restoration of power infrastructure, road upgrades and other civil infrastructure,” commented Myanmar chairperson and CEO John Lamb.
The starter pit will require $191-million in capital expenditure to build an openit mining operation with a mining rate of 8.4-million tonnes a year, providing a nominal 1.8-million tonnes a year of mineable material for processing.
The China pit will deliver 1.01-million tonnes of lead, 80.26-million ounces of silver, 517 000 t of zinc and 30 000 t of copper.
“In the 1930s, Bawdwin was among the largest and richest lead and silver mines in the world. The Bawdwin joint venture aims to restore the operation to its position as a leading base and precious metals mine.
The scoping study will be followed by the completion of a prefeasibility study in early 2019.