logo-loader
viewFYI Resources Ltd

FYI Resources welcomes start to GR Engineering-led DFS due mid-2019

The company’s pre-feasibility study estimated a 52-year mine life for the project.

FYI Resources' Cadoux kaolin ore produces high-purity alumina
FYI Resources' Cadoux kaolin ore produces high-purity alumina

FYI Resources Ltd (ASX:FYI) (FRA:SDL) contractor GR Engineering Services Limited (ASX:GNG) has started work on a fully-funded definitive feasibility study (DFS) for the Cadoux Kaolin Project in Western Australia.

The study for FYI’s wholly-owned project will build on FYI’s GR-produced September 2018 pre-feasibility study which modelled an 8,000-tonne-a-year production scenario for a high-value, ultra-high grade (>99.99%) alumina product suitable for export.

FYI Resources’ maiden ore reserve supports 52-year mine life for high-purity alumina project

FYI's mine plan

FYI's mine plan

The inland project, northeast of Perth and southeast of Geraldton, had a net present value (NPV) US$506m (10% discount rate).

Cadoux project’s internal rate of return (IRR) of 46% and earnings before interest, tax, interest, depreciation and amortisation (EBITDA) of US$128 million a year, based on development capital expenditure (capex) of US$180 million.

The capex and key financials pus the estimated project payback at 3.6 years.

Cadoux project’s reserves are 2.9 million tonnes grading 24.4% aluminium oxide.

READ: FYI Resources’ PFS confirms long-life, low-cost high-purity alumina project

FYI managing director Roland Hill said: “The Cadoux Kaolin Project PFS demonstrated outstanding project metrics and absolutely warrants the highest standard of engineering.

“We believe as a result of the team that we have assembled we are well placed to commence construction in line with our project development schedule next year.

“GR Engineering delivered a fantastic result with our PFS and based on the success of that outcome we are more than pleased to have the continuity with them through the completion of the bankable feasibility study.”

The DFS is expected to be completed by mid-2019, with construction currently planned for the December 2019 financial quarter.

READ: FYI Resources completes optimised metallurgical flowsheet

A schematic of FYI’s key milestones timeline ahead of completing its bankable feasibility study

A schematic of FYI’s key milestones timeline ahead of completing its bankable feasibility study

WA-based FYI will undertake a number of key activities over that period, including: preparing project risk mitigation studies, continued work on permitting approvals; Kwinana refinery location site-selection activities; continued project financing and strategic funding discussions; and advanced customers and offtake party discussions.

FYI’s DFS contractor, Australian engineering services company GR Engineering, has completed more than 160 feasibility studies, with its expertise in HCl precipitation and leaching being a particular drawcard for FYI.

Quick facts: FYI Resources Ltd

Price: 0.068 AUD

ASX:FYI
Market: ASX
Market Cap: $14.47 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of FYI Resources Ltd named herein, including the promotion by the Company of FYI Resources Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

FYI Resources commissioning high purity alumina pilot plant

FYI Resources Limited (ASX:FYI) managing director Roland Hill updates Proactive Investors on the commissioning of the high purity alumina (HPA) pilot plant at Kewdale, Western Australia. Hills says the plant is crucial in the development of the Cadoux Kaolin Project and he is happy with...

on 27/6/19

3 min read