Name of the Project
Dolphin tungsten project.

Location
King Island, Tasmania, Australia.

Project Owner/s
King Island Scheelite (KIS).

Project Description
The project has a probable reserve of 4.43-million tons grading 0.92% tungsten trioxide.

KIS proposes to extend the historical Dolphin opencut mine, eastward to a depth of –140 m RL, to recover remnant ore from the historic underground operation using an eight-year opencut mine. On completion of the proposed Dolphin opencut, a further six years of underground mining is planned from ore resources between –140 m RL to –300 m RL, extending total project life to 14 years.

The opencut operation is planned to mine and process about 400 000 t/y of ore for eight years to produce about 26 800 t of tungsten concentrate. The underground mine will be accessed from a portal established at –120 m RL and a new southern decline developed to re-access and rehabilitate historic mine infrastructure below –150 m RL, including production drives and ventilation return airways. 

The underground production schedule and mining equipment list have been calculated, based on the mine design and production rates of about 300 000 t/y of ore producing an additional 24 500 t/y of tungsten concentrate. The project also requires the construction of a 400 000 t/y gravity process plant, supplemented by a concentrate dressing circuit, together with mine infrastructure.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The revised feasibility study has increased the pretax net present value of the project, at an 8% discount rate, from $146-million in the June 2019 feasibility study to $241-million. The project has an internal rate of return of 42.5%. Payback is estimated at 2.25 years.

Capital Expenditure
Startup capital has increased from A$65-million to A$72.7-million in the revised feasibility study.

King is exploring possible joint venture partnerships and has mandated a company to assist in securing project debt funding.

Planned Start/End Date
Detailed design, procurement, construction and commissioning could be achieved within 15 months after financial close.

Latest Developments
KIS has secured an additional A$33-million in debt funding for the redevelopment of its Dolphin tungsten project.

The debt funding, secured from a group of lenders comprising major shareholders and an external party, is in addition to the A$10-million Tasmanian government loan secured earlier this year, which the company is renegotiating to accommodate the further debt funding.

The debt facilities are repayable between three and six years after drawdown, with annual interest rates of between 6.5% and 8.25%, and would be subject to shareholder approval at an annual general meeting planned for October.

Key Contracts, Suppliers and Consultants
Polberro Consulting (underground mine plan and schedule); Resource and Exploration Geology (required personnel, equipment and quarterly operating expenditure for contract underground mining estimate); KIS (update of Xenith Consulting’s estimated opencut mining costs); Gekko Systems (processing plant design, based on a flowsheet developed by ALS Laboratories).

Contact Details for Project Information
KIS, tel +61 2 8622 1402 or email kis@kisltd.com.au.