Highfield Increases Life of Mine at Muga to 47 Years

Highfield Resources (ASX:HFR) announced that it has made significant progress in the construction preparation at its Muga potash project. The company optimized operational efficiencies as well as sales and marketing activities and increased the project’s life of mine from 24 years to 47 years at a production rate of 1.08 million tonnes of K60 granular muriate of potash (MOP) per annum.
Highlights, as quoted in the press release:

• Muga Potash Project has been optimised to enhance operational efficiencies, sales and marketing activities, and life of mine in preparation to commence construction
• Life of mine increased from 24 years to 47 years at a production rate of 1.08m tonnes of K60 granular muriate of potash (MOP) per annum
• Significant potential upside to life of mine remains from substantial untested Exploration Target (ASX Release 19 June 2015)
• Project NPV10 increased from US$1.42bn to US$1.46bn, NPV8 increased from US$1.80bn to US$2.04bn
• Proven and Probable Ore Reserves increase from 146m tonnes at an average grade of 12.7% K2O to 253m tonnes with an average grade of 11.5%, an increase of 73% from the DFS
• Average metallurgical recovery of 88% of KCl contained in sylvinite
• Phase 1 capex increases marginally to €267 million from €249 million (7%)
• Three parallel infrastructure drifts to be built upfront to ensure smoother ramp up and enhanced operational efficiency whilst allowing for future mine expansion
• Initial production targeted for October 2017
• Contract pricing secured for decline, site works, drying, compacting and glazing equipment are within budget and program (representing approximately 25% of direct third party costs ex contingency)
• Encouraging discussions held for sales of by-product salt into US markets likely to enhance project metrics

Click here to read the full Highfield Resources (ASX:HFR) press release.