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.

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) press release.