Pre-Feasibility Study Highlights Robust, Short Lead Time Start-up Opportunity
- Start-up manganese concentrate export scenario has been developed for the Butcherbird Manganese Project as part of a staged development strategy.
- Maiden Proved and Probable Ore Reserve of 50.55Mt at 10.3% Mn containing 5.22Mt Mn (4.28Mt Recoverable Mn).
- Pre-tax Net Present Value8 (NPV8) of Nominal A$441M
(Real A$283M) and IRR of Nominal 255%, (Real 223%).
- Low capital requirement of $14.5M plus $9.2M working capital.
- Average annual operating cashflow of $32.1M for years 1-5.
- Simple payback period 6 months from start of operations.
- Full beneficial production scheduled for next financial year.
- 42 year mine life based on Measured and Indicated Resources.
- Medium grade manganese market is the fastest growing section of the manganese market.
- Base case assumes annual production and sale of 312,000tpa of medium grade lump manganese concentrate grading 30-35% Mn.
- Complements and enhances the plan to develop and Electrolytic Manganese Metal (EMM) plant.
For full details please refer to the full Company ASX release located here.