Metallica Minerals completes a PFS on a bauxite project in Queensland’s Cape York

<p>Metallica Minerals Ltd. Australia has successfully completed an independent pre-feasibility study (PFS) towards the development of the Urquhart Bauxite project in Queensland&rsquo;s Cape York.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Metallica%20Minerals.png" alt="News" width="517" height="226" /><br />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.<br /><br />{googleAdsense}<br /><br />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.<br /><br />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<br />Q2 2017. Metallica is targeting an annual production rate of 1.5 million tonnes by 2019.<br /><br />As on 30 September 2016, Metallica Minerals had a cash balance of circa $1.5 million.</p>