02/11/2018 - 14:52

King River flags $2bn+ capex

02/11/2018 - 14:52

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King River Copper has put a $2 billion-plus price tag on its Speewah vanadium project near Kununurra, while TNG has appointed German group SMS to complete an engineering study for its vanadium project in the Northern Territory.

The Speewah project is located south of Kununurra.

King River Copper has put a $2 billion-plus price tag on its Speewah vanadium project near Kununurra, while TNG has appointed German group SMS to complete an engineering study for its vanadium project in the Northern Territory.

King River said the current capital cost estimate for Speewah was between $2 billion and $2.5 billion.

The project has a combined measured resource of 322 million tonnes at 0.32 per cent vanadium, 2 per cent titanium and 14.9 per cent iron.

The company is forecasting commissioning of the project in July 2023, with a pre-feasibility study expected to begin early next year.

“The preliminary infrastructure strategy for the SVP is to establish the primary processing facilities on the mine site and then transport the magnetic concentrate to a hydro-metallurgical facility in Wyndham approximately 170 kilometres to the north,” King River said.

“The results of the study are being used for internal project decision making by KRC and the board are sufficiently encouraged by the financial returns of the long-life project to continue to the next stage of development.”

Shares in King River finished down 39.29 per cent at 3.4 cents each today.

Meanwhile, TNG has appointed SMS to complete front-end engineering design for its Mount Peake vanadium project.

In its analysis, SMS will include all process plant equipment required for the Mount Peake operation, including the mine site concentrator and associated downstream processing plant, as well as all associated plant and equipment.

“In addition, TNG has successfully negotiated the work scope with SMS group to result in a fixed-price engineering procurement and construction proposal, as well as for SMS group to provide TNG with production quantity, production rate and product quality guarantees,” TNG said in a statement to the ASX.

Shares in TNG were up 4.35 per cent at 12 cents each at the close.

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