Brisbane’s Metallica Minerals Limited announced yesterday its successful completion of an independent pro-feasibility study (PFS) for its Urquhart Bauxite project on Cape York, Queensland.
According to the report, the project has a net-present value of A$78.4 million (US$56.5 million). The project’s proved and provable resources are estimated at 6.5 million metric tons of bauxite ore. The report estimate a revenue stream of almost A$300 million (US$216 million) over five-and-one-half years of production, with payback occurring after five months. The estimated total operating margin is forecast to be A$12 (US$8.65) per metric ton.
Metallica Minerals owns 50% of the project. The report indicates that the firm will attempt to minimize mine start-up costs and maximize profits by using the contractor model. The joint venture is negotiating a mining and haulage contract at present, with a goal of beginning production of the high-margin bauxite in Area A in the second quarter of next year.
The firm expects to reach a production rate of 1.5 million metric tons per annum in two years.
Metallica Minerals Limited is a publicly-traded resource exploration and development company that markets bauxite, zircon-rutile, nickel-cobalt-scandium, and graphite. The firm was established in 1997 and currently has two ongoing projects – the Cape York Heavy Mineral Sand and Bauxite Project in Queensland, in which it owns a half interest via its wholly-owned subsidiary Oresome Australia Pty Ltd, and the Esmeralda Graphite Project near Croydon in Queensland.