Sign up Australia
Proactive Investors - Run By Investors For Investors

Tawana Resources NL reveals robust economics for Bald Hill lithium project

Bald Hill is expected to achieve a payback period of only 12 months.
Tawana Resources NL reveals robust economics for Bald Hill lithium project
The initial “starter pit” has a net present value of $150 million

Tawana Resources NL (ASX:TAW) has revealed positive results from the pre-feasibility study (PFS) on its Bald Hill Lithium-Tantalite Project located southeast of Kambalda in Western Australia.

Bald Hill is projected to become a low-cost producer of high-quality spodumene (lithium) concentrates in Q1 2018.

Tawana is forecasting an annual production of circa 155,000 tonnes per annum of spodumene concentrate and 260,000 pounds per annum of tantalum pentoxide, for 3.6 years.

The PFS for the Project, being the initial “starter pit”, contemplates a net cash flow before tax of $223 million and a net present value (NPV at 10% discount rate) of $150 million.

Importantly, Bald Hill is projected to achieve an internal rate of return of 185% with a payback period of only circa 12 months.

Furthermore, the NPV is expected to increase significantly as additional ore reserves are defined.

The project currently has a maiden lithium ore reserve of 4.3 million tonnes at 1.18% lithium and 208 ppm tantalum.

Tawana has estimated average concentrate cash costs (net of tantalum pentoxide by-product credits) of A$508 per tonne (US$381 per tonne).

The capital cost estimate, including a new 1.2 million tonnes per annum plant and upgrades to the existing tantalum plant and infrastructure at the Bald Hill site, is circa $42 million.

The Bald Hill project is owned by Alliance Mineral Assets (SGX:40F) with Tawana earning a 50% interest.

View full TAW profile View Profile

Tawana Resources NL Timeline

Related Articles

Checking a Redmoor core sample
May 11 2018
The Redmoor project's inferred resource has 45,000 tonnes of contained tin equivalent.
worker on a hill
April 19 2018
The turnaround plan at the Drakelands mine is beginning to take effect
April 12 2018
The Silver Cloud project lies on one of the world's richest gold belts

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use