Myanmar Releases Bawdwin Lead-Silver Starter Pit PFS

A prefeasibility study (PFS) for the first phase of mining operations at Myanmar Metals’ (ASX:MYL,OTC Pink:MYMRF) joint venture Bawdwin lead-silver starter pit has unveiled a pre-tax net present value of US$580 million.

Released on Monday (May 6), the PFS also indicates an internal rate of return of 30 percent and a four year payback period. Bawdwin’s starter pit is docketed to be a low-cost operation with a planned capital expenditure of US$267 million with a US$33 million contingency; total operating costs are set at US$108 per processed tonne.

Alongside the asset’s planned dollar signs, Myanmar released a maiden probable ore reserve for the 13 year operation; it comes to to 18.4 million tonnes (Mt) at 6.4 percent lead, 169 grams per tonne (g/t) silver and 3.4 percent zinc. This represents 74 percent of total production from the starter pit.

Myanmar has planned for 24.7 Mt of mineralized material to be processed from the starter pit, representing 26 percent of Bawdwin’s mineral resources at 94.2 Mt.

“Bawdwin’s mineral reserves and resources underpin a very long life mining operation. The PFS represents our plan for Phase 1 of mining operations and in this phase, the life of mine infrastructure is built and paid for,” Myanmar Chairman and CEO John Lamb said in a statement.

“With the infrastructure paid for in Phase 1 it is clear that future mining operations, including the first two underground mines now under scoping study, have potential to be very value accretive.”

Next to the recent work done to achieve the PFS, the company is in the scoping study stage for underground mining operations and the asset’s Shan and Meingtha lodes. According to Myanmar, this is to explore for potential resources that would extend the life of mine and add value to the operation as a whole.

While the company is expecting mining operations at the starter pit to be in action by 2021 following a 21 month construction period, Myanmar noted that there is potential for pilot scale operations at Bawdwin to take place sometime this year.

Bawdwin is a joint venture project that is majority owned by Myanmar at 51 percent; the other stakes in the asset belong to major local partners Win Myint Mo Industries and East Asia Power Company.

Myanmar’s share price closed 4.76 percent lower on the ASX on Monday, ending the day of trading at AU$0.08. As of May 3, lead was trading at US$1,878 per tonne on the London Metal Exchange.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.