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Elemental Minerals Ltd. (TSX:ELM,ASX:ELM) reported positive results from the independent Pre-Feasibility Study on its Sintoukola Potash Project in the Republic of Congo.
As quoted in the press release:
PFS HIGHLIGHTS
- Project after-tax NPV10 of US$ 2.97bn, IRR of 29.3%
- Project pre-tax NPV10 of US$ 3.90bn, IRR of 31.3%
- Production cash costs of US$ 79.71/t, FOB – in the lowest quartile of global production cost
- Total initial capital costs of US$ 1.85bn
- includes a weighted average contingency of 18%
- includes infrastructure of US$ 580m
- Pay-back from production start-up of 3 years
- Production of 2Mt per annum of Muriate of Potash (“MoP”) from a conventional underground mine with a 23 year life of mine
Elemental Minerals CEO Iain Macpherson said:
The Pre-Feasibility study confirms excellent economics and highlights the Project’s key competitive advantages of a high-grade orebody suited to conventional mining and processing using proven technologies. The scalability and location of the Project reinforces its global significance and the potential for the Congo basin to become a major potash producing region. These results confirm our strategy of a fast track approach, allowing us to remain on track to deliver an independent potash operation to the market in the near future. It is significant to note the upside that remains in our Project when one considers the ability to share Capex with industry majors on the Project infrastructure and in the possible delivery of a larger mining inventory from the high grade Hangingwall seam at Kola that would likely be the plant feed source in the early years of the Project’s operation.
Click here to read the Elemental Minerals (TSX:ELM,ASX:ELM) press release
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