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West High Yield Resources Ltd. (TSXV:WHY) released the results of a Preliminary Economic Assessment (PEA) on its Record Ridge Project in BC. Highlights include pre-tax NPV 5% of US$1.339 billion and IRR (pre-tax) of 21% (100% equity), as well as post-tax NPV 5% of US$830 million and IRR (post-tax) of 17% (100% equity), and an estimated mine life of 42 years.
As quoted in the press release:
Highlights of the PEA include the following:
- Pre-tax NPV 5% of US$1.339 billion and IRR (pre-tax) of 21% (100% equity).
- Post-tax NPV 5% of US$830 million and IRR (post-tax) of 17% (100% equity).
- Initial capital cost estimation of US$608 million.
- Payback – Estimated before tax at end of fifth year of production.
- An estimated mine life of 42 years.
- Measured and Indicated Mineral Resources of approximately 43 million tonnes averaging 24.6% Mg, using a 21.9% cut-off. Approximately 10.6 million tonnes of contained Mg.
- Throughput – 3,000 tonnes per day.
- Market price – US$1,100/tonne Fused Magnesium Oxide (“MgO”) and by-product credit of US$75/tonne for Sodium Sulfate.
- An initial assumed overall average process recovery rate of 80% Mg based on laboratory scale metallurgical test work producing an intermediate calcined MgO product. This will be subject to additional test work to confirm the recovery into a fused MgO product, which has not been demonstrated to date.
- Low variation in grade throughout the deposit suggests that the need for detailed grade control and selective mining methods will be limited.
Click here to read the West High Yield Resources Ltd. (TSXV:WHY) press release
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