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Aeon Metals reveals economic potential of Walford Creek

The projected life-of mine net cash flow is $84 million.
Aeon Metals reveals economic potential of Walford Creek
Estimated average annual EBITDA of $39 million for 6 years

Aeon Metals (ASX:AML) has indicated that its Walford Creek Project in north west Queensland is a technically conventional and economically robust project, from a preliminary economic assessment.

Importantly, the company has projected a life of mine revenue from copper, zinc, silver and cobalt of $579 million through the development of the high grade Vardy Zone within the project.

The projected life-of mine net cash flow is $84 million with an average EBITDA of $39 million per year (initial mine life of 6 years).

Aeon’s estimated capital cost to first production is $97 million and operating cost is $97/tonne of run-of-mine production.

The company’s drilling in 2016, which was focused on the eastern portion of the Walford Global Resource, referred to as the Vardy Zone, successfully identified high value shallow mineralisation.

The project currently has a resource of 3.6 million tonnes grading 1.15% copper, 1.06% zinc, 0.18% cobalt, and 26 g/t silver.

Significantly, over 70% of the tonnes included in the current resource inventory are in the measured and indicated category.

The company has identified three areas for Q2/Q3 2017 drilling: infill at Vardy, drilling to the northeast and targeting of the high grade zones within the current resource west of the Vardy Zone.

Aeon is aiming to complete the bankable feasibility study by Q4-2017 and targeting to commence the production of copper (with silver credits), zinc and cobalt concentrates in Q1 2019.

The company is well funded with a cash balance of about $4 million as at 31 December 2016.

Aeon’s share price has increased by more than 40% over the past six months, last trading at $0.19.





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