Anax Metals Limited (ASX: ANX) has released a preliminary scoping study for its 80%-owned Whim Creek Project, with results pointing to a mining and processing life of between five to seven years.
The study, which was delivered with a nominal margin of error of ±30%, investigated the mining of existing mineral resources including Mons Cupri, Whim Creek and Salt Creek, and would see a 320Ktpa concentrator constructed at the project capable of producing saleable product of 33,200 tonnes Cu, 62,400 tonnes Zn, 17,800 tonnes Pb, 1.6 Moz Ag and 9,900 Oz Au.
Key numbers from the study include:
- Free cashflow of $196M (Range: $189M and $296M)
- Pre-production capital cost estimate of $52M
- IRR of 77% (Range: 71% to 111%)
- NPV (6%) of $163M (Range: $151M to $247M)
Capitalising on existing infrastructure at Whim Creek
The Whim Creek project, located 115km southwest of Port Hedland, is served by existing infrastructure including sealed highway, airport, seaport, gas pipeline and legacy equipment including a heap leach facility installed by previous owner Straits Resource Limited.
The heap leach plant, which is currently subject to an Environmental Protection Notice, is currently undergoing upgrade work to its ponds and containment infrastructure, with completion expected in 2021.
Subject to environmental approvals, Anax plans to construct further facilities to include crushing and sorting, heap leach and aggregate recovery.
“We are delighted with the outcomes of the study which demonstrate the leverage and flexibility the strategy delivers”
Management comments
Anax Metals Managing Director Geoff Laing said: “We are delighted with the outcomes of the study which demonstrate the leverage and flexibility the strategy delivers. In just over a year, we have acquired an 80% interest in a strategic Pilbara copper asset, become a Joint Venture Partner to Venturex Resources Ltd and attracted the interest and support of Anglo American Marketing Ltd.”
Images: Anax Metals Limited
