Anax Metals Limited

Heap Leach Scoping Study Shows Substantialy Greater Free Cash At Whim Creek

Anax Metals Limited (ASX: ANX, Anax, or the Company) is pleased to announce the results of a scoping study that evaluated processing of low-grade sulphide and transitional material through the existing and fully permitted heap leach facility at the Whim Creek Project (Whim Creek or Project). The Whim Creek Project is 80% owned by Anax with the remaining 20% owned by Develop Global Limited (Develop).


HIGHLIGHTS

  • Significant future upside from bioleaching low-grade sulphide and transitional ores,
    • Potential for Whim Creek cashflows* to increase by 20% to more than $410 Million (M). Heap leach to deliver ~$70 M in free cash.
    • Total project NPV to grow to $270 M with preproduction capex remaining at $71 M.
    • Production of copper cathode and zinc sulphate crystal to further enhance the product suite from the Project.
    • Project production potential to grow to 10 Ktpa Cu and 10 ktpa Zn.
  • The planned bioleaching is in addition to the sulphide concentrate detailed in the April 2023 DFS (Appendix 1).
  • The heap leach study demonstrates the potential for the low-cost production of sought after copper cathode and zinc sulphate products. The capacity to process ores through a concentrator or leach plant is a major step towards becoming the Pilbara processing hub.
  • Whim Creek is strategically positioned to become a producer of key battery metals including copper and zinc concentrates along with copper cathode and a fertiliser feedstock, zinc sulphate crystal.
  • The project is permitted to process sulphide ores through the concentrator and to utilise the heap and associated infrastructure to leach oxide, transitional and sulphide ores.

Figure 1: Whim Creek Heap Leach and Associated Infrastructure

The Company’s Managing Director, Geoff Laing, commented:“The Anax team have developed world class bioleaching intellectual property that unlocks value for Whim Creek and provides a platform for our business to become the dominant player in consolidating Pilbara base metal projects. The capacity to treat primary ores and secondary/oxidised ores allows us to deliver treatment options for all the base metal projects in our region. We will produce a suite of battery metal products along with a key feedstock for the production of fertiliser through a facility that will generate low carbon emissions.”

* Reported on a 100% Project Basis. Anax has an 80% interest in the project and will contribute 80% of costs and receive 80% of financial outcomes Free Cashflow reported before financing and before tax.


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This article includes content from Anax Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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