Venture Minerals has announced the completion of a Bankable Feasibility Study (BFS) on its Mt Lindsay tin-tungsten project in Tasmania. The capital cost of the project is now estimated at A$198 million, based on an expanded processing capacity of 1.75 million tonnes of ore from previous studies. The mine is expected to generate pre-tax net revenue of A$550 million over a mine life of 9 years (based on an assumed US$/A$ exchange rate of 0.9).
Operating costs per tonne of ore from open pit and underground mining are estimated at A$59/tonne. Proven and probable reserves are estimated at 14 million tonnes grading 0.2% tin, containing 30,000 tonnes of tin. However after allowing for by-product credits from tungsten, iron and copper the “tin equivalent” grade is 0.7%.
Venture Minerals Managing Director Hamish Halliday said: “Following several years of dedicated commitment to the Mt Lindsay Project by our team, the Company is delighted with the outcome of the BFS. The study has emphasized the potential of the project in particular its longevity. Importantly the BFS excludes the exciting, near production DSO (direct shipping iron ore) assets and the considerable exploration upside that surrounds Mt Lindsay. With the project expected to deliver strong cash flow over a significant mine life, the development of Mt Lindsay will transform Venture into a prominent world producer of tin and tungsten, delivering returns to shareholders and benefiting stakeholders of the project alike, particularly those in the northwest community of Tasmania.”
With the BFS now complete the Company will focus on the approval process as well as off-take and financing strategies. In addition Venture will accelerate its exploration efforts at the new Big Wilson tin prospect, where the Company has recently contracted a second rig to commence work in the coming week.
