AMN - TANZANIA: DFS shows Panda Hill is highly robust

Cradle Resources has released a Definitive Feasibility Study on its Panda Hill Niobium Project in Tanzania demonstrating a highly economic and robust project.

Highlights:

-          NPV8 pre-tax $796 million

-          NPV8 post-tax $542 million

-          IRR 32% (pre-tax)

-          IRR 27% (post-tax)

Key feasibility study results include:

-          Life Of Mine average EBITDA of $112 million/year

-          Initial capital expenditure of $196 million

-          Life Of Mine of 30 years

-          Average LOM production of 5,400 tonnes/year contained niobium (8200 tonnes/year ferroniobium)

The project starts at 1.3 million tonnes/year and ramps up to 2.6 million tonnes/year after year four of production, whereupon:

-          NPV8 pre-tax increases to $1,408 million

-          NPV8 post-tax increases to $1,022 million

The initial 10 years mining is predominantly in the higher grade AngelZone. Key production figures for the first 10 years:

-          Average grade: 0.68% Nb2O5

-          Average recovery: 61%

-          Strip ratio: 2.5 to 1

-          Average LOM grade: 0.54% Nb2O5

-          LOM strip ratio: 1.5 to 1

The study is reported in accordance with JORC Code (2012) and is based on Mineral Resources. It incorporates the results of the extensive investigations and feasibility work carried out since 2012 by Cradle and more recently by Panda Hill Tanzania Ltd (PHT). Cradle owns 50% of PHT which in turn owns 100% of the project.

Cradle Resources chairman Craig Burton says: “The Cradle DFS demonstrates an exceptionally strong project. The numbers speak for themselves. On any analysis, this project is likely to be brought into production and deliver substantial profits for many years. This will be the first new niobium producer in 40 years and the only new producer of this rare metal in the foreseeable future. The demand for niobium continues to grow strongly due to the burgeoning worldwide demand for new-age materials and associated elements like lithium, graphite and niobium. Panda Hill is only seeking to capture a modest portion of this ongoing demand growth. The next six months will focus on off-take and debt financing whereupon a decision to mine is expected. During this financing period, front end engineering and fine tuning of the project will continue, ensuring a rapid and smooth transition into construction.”

www.cradleresources.com.au

News courtesy of International Mining