Name of the Project
Pilgangoora lithium/tantalum project, Australia.

Location
The project is located near Port Hedland, in Western Australia.

Client
Pilbara Minerals.

Project Description
A prefeasibility study (PFS) has confirmed the technical and financial viability of a two-million-tonne-a-year mining and on-site processing operation at the Pilgangoora project

The PFS includes an initial maiden ore reserve of 29.5-million tonnes grading at 1.3 g/t lithium oxide ((Li₂O), 134 parts per million tantalum pentoxide and 1.18 iron (III) oxide.

The mine and processing plant are expected to deliver 330 000 t/y of spodumene concentrates and 274 000 lb/y of tantalite.

Following conventional openpit mining and delivery to the run-of-mine pad, ore will be processed to concentrate the lithium and tantalum streams.

Concentrates will be transported in bulk or in certain instances, some technical grade produced might be bagged for shiploading and delivery to downstream customers.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate, of A$407-million and an internal rate of return of 44%.

Value
Preproduction capital expenditure is estimated at $184-million.

Duration
The PFS envisages plant commissioning from the fourth quarter of 2017.

Latest Developments
Pilbara Minerals has appointed project management consultancy Engenium to assist delivering of the Pilgangoora lithium/tantalum project, working as part of an integrated owner’s project management team.

Pilbara has also made significant progress with the process plant design and construction package and mining contracts for the project, shortlisting key contracting groups to participate in competitive pricing negotiations. Both packages are expected to be progressed towards final contract award over the next three months.

To accelerate the selection of the engineering, procurement and construction (EPC) contractors for the plant, the company has also agreed that it will facilitate a competitive early contractor involvement (ECI) arrangement, which will be a partially funded exercise between three contracting parties and/or associated groups.

“By adopting an ECI arrangement, we will be able to compress the timeframe for the EPC selection process, allowing us to achieve our key objective of commissioning the project in the fourth quarter of 2017 while still maintaining a highly competitive process that ensures we get the best possible outcome for the project and our shareholders,” commented MD Ken Brinsden.

Six mining contractors and two standalone, drill-and-blast contractors have submitted pricing that has contributed to the definitive feasibility study cost model.

As a result of this work, the company is further considering its strategy to shortlist mining contractors to participate in the upcoming Pilgangoora mining contract tender.

In August this year, Pilbara reported a 136% increase in its total proved and probable ore reserve for Pilgangoora to 69.8-million tonnes, grading 1.26% Li₂O.

This more-than-double upgrade compares with the maiden ore reserve of 29.5-million tonnes, grading 1.3% Li₂O, used to underpin the March prefeasibility study, following an expanded resources programme.

The overall Pilgangoora ore reserve now comprises 883 000 t of contained Li₂O and 20.3-million pounds of contained tantalite.

“The significant increase in the ore reserve has meant that additional work was required to finalise site footprints, including waste dumps, a tailings management facility and surface water management designs. As a result, it is expected that the full details of the definitive feasibility study results and financial model will be released in early September,” the company has said.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Pilbara Minerals, tel +61 8 9336 6267 or fax +61 8 9433 5121.