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View Full Version : GGG: Kvanefjeld Feasibility Study


Sparty
05-25-2015, 02:14 PM
The Kvanefjeld resource (>1 billion tonnes, JORC-code 2012) will support an initial mine life of 37 years and provide scope to both expand production and extend the life of the mine significantly.
The Project will produce rare earth products, uranium oxide, zinc concentrate and fluorspar.
The capital cost of the Project is $1,361M, comprising $1,121 M of project costs (plant, utilities, indirect costs and contingency) and US$240 M of associated infrastructure costs (power, port, village).
The cost of producing the primary product, a critical rare earth concentrate, is US$8.56/kg REO (after by-product credits) making Kvanefjeld one of the world's lowest cost rare earth producers.
The Project has an after tax net present value of US$1.4 Billion (at a discount rate of 8%) and an internal rate of return of 21.8%
The forecast basket price for the Company's critical rare earth concentrate is US$78.6/kg REO producing an operating margin of approximately US$70/kg.
The incremental cost of recovering the uranium from the high-grade mineral concentrate is less than US$6/lb U3O8, which will place Kvanefjeld into the bottom quartile of the cost curve for current uranium production

To read the full ASX announcement go to: www.ggg.gl/docs/ASX-announcements/Kvanefjeld-Feasibility.pdf (http://r20.rs6.net/tn.jsp?f=001QRibvMjquTidYGVdyEX87UZXQW71yCKH5hyNGb 7VTaCt-6BoLy-c9aNAVgC31id5zRtuuMwYwK2oRlTVMzMYW3cbjUrrx_ef2kZE5 tfVfWcjpTO0Ihg6OoempVJ0zWBZvPJ0CJ5s1gjlc_Q1ZsI3vL4 bVmo4DlFGtP68JCii1FaZUNtWTYKDWCXbjLtrY27J2dAryMnIY NIbFydY0GPLE5URMK4eCbDfOSbwRB1aabZXPKpH9-nOGU_9S7KKZz9UO_Unu4viui9nPgfJH09Cf9-ZlYbY-NeaRFveZgjZiSuLEj-L9qmqQuWZ6bMzXNI2r9pNe6c_W9DQsrEeTyS7Ar-YDdzYNp2jSEag-Fbno9qjrkDiiA-OgIiR_56u17qRg0JnyXyQIEk=&c=dfHkaiHTAncXNBwkKJ9Qa0adAuLrFF3OZeA544BfvKjgcmhX 7KjnmA==&ch=s3B5hPn8_QzpAJ4Avw2W78GTqAZafdUTYilMlgK77FVANhd us9gMoA==)