Metallica Minerals completes a PFS on a bauxite project in Queensland’s Cape York
Metallica Minerals Ltd. Australia has successfully completed an independent pre-feasibility study (PFS) towards the development of the Urquhart Bauxite project in Queensland’s Cape York.
According to the study, the estimated pre-tax net present value of the project would be $78.4 million on sales of 6.5 million tonnes of bauxite (proved and probable reserves). The base case of the PFS indicates a potential revenue stream nearing $300 million across 5.5 years of production with a payback period of just five months.
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The bauxite project is expected to generate a strong total operating margin of around $12 per tonne. Metallica owns 50% stake in the Urquhart Bauxite joint venture and the company plans to develop the mine on contract basis in order to minimise mine start-up capital and maximise returns.
The joint project is now negotiating a mining and haulage contract with a qualified contractor in Queensland. The first production of bauxite is expected to commence in
Q2 2017. Metallica is targeting an annual production rate of 1.5 million tonnes by 2019.
As on 30 September 2016, Metallica Minerals had a cash balance of circa $1.5 million.
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