Vital Metals Reports Results from Revised Definitive Feasibility Study at Watershed
Vital Metals Ltd. (ASX:VML) announced the revisions to the definitive feasibility study at its Watershed tungsten project, which showed a reduction in its forecast of pre-production capital expenditure to AU$143 million, compared to AU$172 million from the original DFS put out September 17, 2014.
Vital Metals Ltd. (ASX:VML) announced the revisions to the definitive feasibility study at its Watershed tungsten project, which showed a reduction in its forecast of pre-production capital expenditure to AU$143 million, compared to AU$172 million from the original DFS put out September 17, 2014.
As quoted in the press release:
The review of the DFS concluded that savings in the pre-production capital costs will be realized due to extremely competitive market condition for developer of projects.
- most of the large scale natural resource projects of recent years have finished to are winding down resulting in significant surplus capacity among mining and construction contractors;
- This in turn has led to a reduction in demand for mining and plant equipment with a large amount of surplus and second-hand equipment in the market adding pressure on new equipment vendors;
- continued reductions in construction and mine site jobs has improved labour availability and led to a reduction in wage rates.
Mark Strizek, managing director of Vital Metals, commented:
Watershed ticks the boxes from a financing perspective. It’s a mid-sized project located in a Tier One jurisdiction in North Queensland with a high-quality resource, a potential to build to a 15-year mine life and good economic fundamentals.
Click here to read the full Vital Metals Ltd. (ASX:VML)Â press release.