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.