PERTH (miningweekly.com) – A feasibility study into a direct shipping ore (DSO) operation at the Wonarah potash project, in the Northern Territory, has proven economical for ASX-listed Avenira.
The DSO operation will be focused on the development of the mineral resource at the Arruwurra phosphate deposit at Wonarah over a 23-month period.
The DSO project will mine readily saleable phosphate rock from an openpit operation, with the DSO to be crushed and screened via an on-site crushing plant to produce three distinct saleable phosphate rock products, including lumps, fines and a direct application phosphate rock (DAPR) product.
To be sold are an estimated 180 000 t of lump product, 271 000 t of fines product and a further 225 000 t of DAPR product.
The feasibility study estimates that the project will require a capital investment of A$11.5-million, and will have a pay-back period of 14 months, generating revenues of A$161.3-million at a total operating cost of A$122.5-million.
“The feasibility study confirms the Wonarah DSO project to be a simple, low risk and low capital intensity project with the capacity to generate healthy cash flows, especially in the current phosphate rock price environment,” said Avenira executive chairperson Brett Clark.
“The study demonstrates the technical and commercial viability of the Wonarah DSO project, leveraging a simple and commercially well-understood processing flow sheet that enables us to produce saleable phosphate rock without any chemical beneficiating. Cash flows generated by the DSO project will be applied towards the development of our other downstream ventures. We look forward to progressing financing and offtake discussions with key stakeholders and moving towards the commencement of production.”