Whim Creek DFS proves up

3rd April 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Whim Creek polymetallic project, in the Pilbara, has estimated a capital cost of A$71-million to develop the project.

ASX-listed Anax Metals on Monday reported that the project would generate free cash flow of A$340-million, and would have a pre-tax net present value of A$224-million and an internal rate of return of 54%.

The DFS estimated an initial mine life of eight years, based on the 4.6-million-tonne ore reserve, grading 1.36% copper, 2.30% zinc and 0.68% lead, supporting yearly production of 55 000 t/y of concentrate.

“Copper, zinc and lead are scarce ‘energy metals’ - the Anax team has demonstrated through this DFS that the company has an effective strategy to economically extract these key commodities from target assets,” said MD Geoff Laing.

“The strategy has significantly shortened the project development timeline and delivers highly leveraged outcomes for our shareholders. Importantly, through our stakeholder interactions and considerable rehabilitation work at site we have delivered benefits to our local community and will continue to do so in future.”

The company told shareholders on Monday that project approvals and permitting would continue, and were at an advanced stage, with final approvals expected through the second half of the year.