21/08/2019 - 13:53

Gabanintha capex rises to $454m

21/08/2019 - 13:53

Bookmark

Save articles for future reference.

Technology Metals Australia has released the definitive feasibility study for its Gabanintha vanadium project, which revealed a longer-life operation than previously planned.

The Gabanintha project is located 40 kilometres south of Meekatharra.

Technology Metals Australia has released the definitive feasibility study for its Gabanintha vanadium project, which revealed a longer-life operation than previously planned.

The DFS outlined capital expenditure of around $454 million, compared with the $380 million figure disclosed in its pre-feasibility study last June.

However, the expected underlying earnings from its mine rose from approximately $3.1 billion to $4.1 billion, and its estimated mine life also increased from 12 years to 16 years.

It is expected to produce 12.8 tonnes of vanadium pentoxide per annum, at a cost of $US5.75 per pound, compared with $US4.27/lb previously.

Despite the cost rise, Technology Metals managing director Ian Prentice said it would remain among the world’s lowest-cost producers.

“The very high-quality Gabanintha vanadium project DFS has generated an outstanding result delivering lowest quartile operating costs over a long initial mine life at a scale that will make the project the largest single primary vanadium producer in the world,” he said.

“Delivery of this study is a key milestone in progression of discussions with prospective development partners that the company has engaged with over the past 12 to 18 months.”

Technology Metals is targeting production to begin in 2022, and has signed a memorandum of understanding for an offtake agreement with China’s CNMC Ningxia Orient Group to purchase an initial minimum amount of 2,000tpa from the project.

The Gabanintha project is located 40 kilometres south of Meekatharra.

It is one of four Vanadium projects under assessment in WA, along with TNG's Mount Peake, Atlantic's Windimurra Rebuild, and Australian Vanadium's namesake project.

Click the link to the see the full details of WA's vanadium projects.

Shares in Technology Metals were flat at 20 cents each at 2.30pm AEST.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options