Altura Mining releases Pilgangoora Lithium Project DFS
THE DRILL SERGEANT: Altura Mining (ASX: AJM) released results of a Definitive Feasibility Study (DFS) completed on the company’s 100 per cent-owned Pilgangoora lithium project, located near port Hedland in Western Australia’s Pilbara region.
According to Altura, key outcomes of the DFS include a project Net Present Value (NPV) of $411 million over an initial 13 year mine life based on a current ore reserve estimate of 20.33 million tonnes, Life of Mine (LOM) cash costs of $316 per tonne of spodumene concentrate, a capital estimate of $139.7 million including sustaining capital and a payback period of 1.8 years.
The study indicated potential exists to increase both the current resource of 39.4 million tonnes and ore reserve estimate on completion of the current resource extension drilling program with results expected in Q4 2016.
The Pilgangoora deposit will be extracted using open pit methods, which the company said would be enhanced by the shallow and thick mineralisation allowing spodumene ore to be mined from the commencement of mining.
The DFS has highlighted a very encouraging LOM strip ratio of 2.9:1 providing Altura with a very low operational mining cost.
“The DFS has been completed with contributions from industry leading professional service providers; capital cost estimates and operating cost estimates are presented in Australian dollars, are on a third quarter 2016 basis and carry an expected accuracy range of ±10 per cent,” Altura Miing explained I its ASX announcement.
“The DFS capital and operating cost estimates have been externally peer reviewed by integrated project service group Aquenta Consulting Pty Ltd (Aquenta).”
The company recently updated the Ore Reserve Estimate the Pilgangoora lithium project at 20.3 million tonnes at 1.06 per cent lithium oxide (Li2O), which is classified entirely as a Probable Ore Reserve estimate.
“Altura Mining is extremely pleased with this validation of previous estimates and high conversion rate,” the company said.
“Significant potential exists to increase both the mineral resource and ore reserve estimates via additional resource extension drilling currently being undertaken with a particular focus in the south-east portion of the mining leases.”
Email: cosec@alturamining.com
Website: www.alturamining.com