
November 29, 2023
Marquee Resources Limited (ASX:MQR) are pleased to announce the completion of a Preliminary Economic Assessment (PEA) on the Lone Star Copper Gold Project, Washington State, USA (“Lone Star” or “The Project”).
Key Highlights:
- PEA Study Assignment: Mining Plus (USA and Australia) tasked with completing a Preliminary Economic Assessment (PEA) for Lone Star in April 2023.
- Mineral Resources: Lone Star's Mineral Resource Estimate (MRE) includes Indicated 9.76 Mt at 0.60% CuEq and Inferred 3.35 Mt at 0.44% CuEq, based on a 0.10% CuEq cutoff within a conceptual pit shell.
- Financial Drivers for MRE:
- Copper Price: US$ 4.10/lb
- Gold Price: US$ 1,750/oz
- Copper Selling Cost: US$ 0.10/lb
- Gold Selling Cost: US$ 50/oz
- Recovery Rates: 90% for both Copper and Gold
- Mining Cost: US$ 2/t
- Processing Cost: US$ 7/t
- Exclusions: Transportation costs from mine to mill, from mill to refinery, and a portion of mining operating cost (US$ 1.40/t).
- Key Conceptual Outcomes:
- Life of Mine (LOM): 14 years
- Peak Production: Years 11-14
- Average Production: 1.09 Mtpa over LOM, totalling 14.1 Mt at 0.37% Cu and 0.22g/t Au.
- Copper and Gold prices are key to financial model, with prices considered valid for Base Case, however, project is sensitive to increased metal prices.
- Mining Operating Cost: US$ 3.24/t based on Open Pit Engineers (Canada Team) and benchmarking.
- Processing Cost: US$ 14.49/t as advised by Sedgman Canada.
- Economic Implications: Copper and Gold prices are primary financial drivers; optimistic scenarios show improved results with higher metal prices.
- Treatment Approach: Toll treatment remains preferred for Lone Star due to high initial capital costs for on- site treatment.
- Financial Outcome: NPV: Negative US$ 123.9m and IRR: Negative 10.2%. However, increased metal prices have significant effect on bottom line.
- Recommendations: Further investigation into ore sorting suggested.
- Discount Rate Impact: NPV varies with discount rate; significant impact on metal price optimistic scenarios but negligible in Base Case.
The Company’s Executive Chairman Charles Thomas commented:
"While the Base Case results of the Preliminary Economic Assessment (PEA) for the Lone Star Project are not positive at this stage, we at Marquee Resources are excited about the initial glimpse it offers into the potential of the Lone Star Project as a future copper-gold producer," he stated.
“The current results are just a starting point, and there's considerable scope for improvement. We are actively exploring several avenues for enhancement. With the anticipated upswing in copper and gold prices in the near future, we're confident that the project's financial outlook will turn favourable. Our team is currently evaluating additional near mine and deeper exploration targets. Furthermore, we're looking into a number of promising opportunities like Ore Sorting, which we believe could significantly reduce transportation and processing costs."
"I would like to extend my thanks to the Mining Plus project team across the USA and Australia for their dedication in creating a high-quality study. Their work marks a positive and encouraging step forward, laying the groundwork for Marquee to develop a clear and strategic pathway for the Lone Star Project. There is a sense of optimism and forward- looking determination to enhance the project, underlining the company's commitment to unlocking the project's full potential.”
Click here for the full ASX Release
This article includes content from Marquee Resources, 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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12 July 2022
Marquee Resources
Overview
Marquee Resources (ASX:MQR) is a fully funded junior exploration company focused on its battery metals assets in Western Australia and the United States. Its diversified portfolio includes assets containing lithium, copper and rare earth elements - essential metals for battery manufacturing - as well as gold.
Global demand for battery metals is projected to reach $20.5 billion by 2027, growing at a compounded annual growth rate of 8.2 percent from 2020 to 2027, according to Allied Market Research, This growth is attributed to the exponential growth of the electric vehicle (EV) market, with two million EVs sold worldwide just in the first quarter of 2022, up 75 percent compared to the same period in 2021, along with continued market demand for consumer electronic devices.
Many of Marquee Resources’ assets are in advanced exploration stages, with highly encouraging exploration results.
The company’s flagship project is the West Spargoville Lithium Project, located in the prolific Southern Yilgarn Lithium Belt in Western Australia, and contains hard-rock lithium deposits. Marquee Resources has partnered with Mineral Resources Limited (ASX: MIN) to explore and develop the project. Mineral Resources has extensive experience operating hard-rock lithium mines and brings technical and operational expertise to the project. The West Spargoville Lithium Project has already yielded encouraging exploration results.
Marquee’s other encouraging lithium assets include Clayton Valley Lithium and Kibby Basin Lithium projects, both containing lithium brine and building additional excitement for lithium potential. Results from the 2022 drill program at Kibby Basin have returned high levels of lithium-bearing sediments along with dissolved lithium in the groundwater, with up to 924 parts per million (ppm) lithium from the two exploration boreholes (KB 22-01 and KB 22- 02) that were completed.
The company’s additional projects target other critical battery metals such as rare earth elements and copper. Its Lone Star Copper-Gold project is currently undergoing a 6,000-meter diamond drilling program. Marquee’s 2022 drill campaign at Lone Star intersected a wide mineralised envelope of up to 150 meters at 0.5 percent copper, with high-grade mineralised zones up to 19.8 meters at 2 percent copper. As many zones in the deposit remain open and untested, there is significant potential for additional mineralization, combined with historical diamond and percussion drill hills indicating high-grade deposits of copper and gold.
In October 2022, Marquee announced its maiden mineral resource estimate for the Lone Star Copper-Gold Project containing indicated mineral resource of 9.7 Mt at 0.45 percent copper and 0.24 g/t gold, and inferred mineral resource of 3.5 Mt at 0.31 percent copper and 0.20 g/t gold.
Marquee Resources is led by strong management with experience in natural resources and corporate administration. Charles Thomas, executive chairman, has over 15 years of experience in capital markets and structuring corporate transactions. Dr. James Warren, chief technical officer, has worked in leadership roles managing technical operations. George Henderson, non-executive director, has extensive experience in equity capital markets dating back to 2004. Anna Mackintosh, company secretary, has 26 years of commercial experience in compliance and finance roles for natural resource companies.
Company Highlights
- Marquee Resources is an Australian fully funded exploration company targeting battery metals with multiple assets in advanced exploration stages.
- The company’s flagship project is the West Spargoville Lithium Project, which has already yielded encouraging exploration results.
- Marquee Resources is in partnership with Mineral Resources Limited (ASX: MIN) to explore and develop the West Spargoville Lithium Project, and the companies have accelerated this farm-In agreement with MinRes acquiring an initial 25 percent interest in the lithium rights at WSP by funding $4.8 million on exploration activities at the project in less than 12 months.
- The company’s Kibby Basin project is located near the only producing lithium mine in the United States and contains encouraging geologic properties that indicate the presence of lithium brine.
- The company has additional projects that target lithium and other battery metals, such as copper, gold, and rare earth elements. Historical and current exploration assays indicate high-grade deposits of target metals.
- A management team leads Marquee Resources with directly relevant experience in natural resource markets, corporate administration and corporate finance.
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