The study confirms the project as a high-value, relatively low-risk and technically strong project.
Using a 10% discount rate, the project’s pre-tax net present value (NPV) has been estimated at $1.27 billion based on a 13-year mine life, which has good potential to be extended.
Direct progression to definitive feasibility study
Given the positive PFS results, the company’s ongoing activities are now focused on the immediate progression to preparation of a definitive feasibility study (DFS).
TMT’s managing director Ian Prentice said: “This is an outstanding result for the technically robust, extremely high-quality Gabanintha Project in a vanadium market environment that is desperate for injection of new production, with considerable upside expected from the work to be completed during the upcoming definitive feasibility study.”
Increasing the mine life and project economics further
The company believes that there is significant opportunity to enhance the results of the PFS through upgrading more of the Inferred resources to the Indicated category.
This would increase the mine life and therefore likely increase the project’s valuation.
Other value enhancement opportunities include lowering the strip ratio through steeper wall angles and optimising the mine plan through a staged development.
Proposed mine based on small portion of JORC resource
The PFS proposed mining operation is based on the Ore Reserve of 16.7 million tonnes at a mined grade of 0.96% vanadium pentoxide (V2O5).
This Ore Reserve is contained within the defined Indicated resource of 21.6 million tonnes at 0.9% V2O5 in the Northern Block of tenements.
Notably, the total Gabanintha Project comprises a global Indicated and Inferred resource of 119.9 million tonnes at 0.8% V2O5.