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Venture Minerals’ Mt Lindsay project could deliver over $550M in net revenue

Venture Minerals’ Mt Lindsay project could deliver over $550M in net revenue

Venture Minerals (ASX: VMS) has completed a Bankable Feasibility Study (BFS) for its flagship Mt Lindsay Tin/Tungsten Project in Tasmania which indicates the project could deliver in excess of A$550 million in net revenue.

Importantly, the BFS excludes the near production DSO assets and the considerable exploration upside that surrounds Mt Lindsay, including the recent high grade tin discovery at Big Wilson.

Key metrics of the BFS include a net present value of $143 million, a return on equity of 33%, net annual revenue peaking at more than $110 million (pre-tax), with a payback period of four years.

The project has a maiden reserve of 14 million tonnes, including proved reserves of 6.4 million tonnes at 0.7% tin equivalent.

It is expected to have a mine life of nine years and a capital cost of $198 million including a 35% plant capacity upgrade to 1.75 million tonnes per annum.

As part of the final stages of the BFS, Venture Minerals recently completed a resource upgrade which saw 73% of the resource now in the Measured and Indicated category.

Mt Lindsay hosts a total resource of 13 million tonnes at 0.7% tin equivalent for 61,000 tonnes of contained tin-tungsten.

With the BFS now complete, Venture Minerals will now focus on the approval process as well as offtake and financing strategies.

The company will also accelerate its exploration efforts at the new Big Wilson Prospect, where it has recently contracted a second rig to begin work in the coming week.

The discovery of Big Wilson followed the start of a maiden drill program during the September quarter in which the first hole intersected a substantial high grade tin zone, assaying at 17 metres at 2% tin.

The prospect contains extensive historical tin workings that extend over 1.1 kilometre of strike.

The Mt Lindsay Project sits between Metals X’s world class Renison Bell Tin Mine, where over 200,000 tonnes of tin metal has been produced since 1960, and the Savage River Magnetite Mine, which is currently producing 2.3 million tonnes per annum of iron pellets.

Venture Minerals is more than adequately funded having recently raised A$17 million, taking its total cash reserves to $18.6 million at the end of the September quarter.

The funds will be used to commence production on the company’s DSO Projects following a decision to mine and to undertake a comprehensive drill program at the Big Wilson Prospect.

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