Name of the Project
Pilgangoora lithium/tantalum project.

Location
Western Australia.

Client
Pilbara Minerals.

Project Description
Pilbara has endorsed the definitive feasibility study (DFS) for the base case two-million-tonne-a-year development of the Pilgangoora project.

The DFS has been based on the project’s updated ore reserve of 69.8-million tonnes grading 1.26% lithium superoxide (LiO₂, or spodumene), 132 parts per million tantalum pentoxide (Ta₂O₅) and 1.04% iron oxide.

The DFS proposes a mining method based on conventional openpit mining, and has been evaluated for truck and hydraulic excavator (backhoe) operations using 4 m  2.5 m flitches for 10 m benches for combination pegmatite mining, and 10 m bench mining for waste mining.

The concentrator plant has been designed to process two-million tonnes a year of ore feed. The nominal capacity of the concentrator has been estimated at 270 t/h.

The flowsheet has been designed to process two-million tonnes a year of ore feed – chemical-grade spodumene at 6% LiO₂ and medium iron; and tantalite concentrate at 30% Ta₂O₅ prefinal dressing.

The concentrator comprises crushing, feed preparation, dense-media separation, gravity separation, grinding, flotation, magnetic separation and dewatering. Wet magnetic separation has been included in the flotation process to reduce iron in the chemical and future technical-grade product.

The Pilgangoora project is expected to produce an average of 314 000 t/y of 6% spodumene concentrate and 321 000 lb/y of tantalite over a mine life of 36 years.

As a result of the significant increase in the Pilgangoora resource and reserve base, Pilbara has also completed a prefeasibility study (PFS) to assess the potential doubling of production from two-million tonnes a year to four-million tonnes a year from Year 3.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value (NPV), at a 10% discount rate, of A$709-million and an internal rate of return (IRR) of 38.1%, with a payback of 2.72 years.

The proposed expansion project has an NPV of A$1.17-billion and an IRR of 46.3%, with a payback of 3.05 years.

Value
A$234-million.

Duration
Construction is expected to start in the fourth quarter of this year and commissioning from late 2017.

Latest Developments
Pilbara Minerals has successfully completed a senior secured bond issue, raising a total of $100-million to finance its Pilgangoora lithium/tantalum project.

The bond issue was launched in May and has been well supported by a combination of large Australian and international funds.

The proceeds from the bond issue will underpin the Pilgangoora project financing package required to develop the project, with first draw-down expected in October this year.

Key Contracts and Suppliers
RCR Tomlinson (EPC) and OTOC Australia (300-room camp relocation package and the re-establishment works).

On Budget and on Time?
The company has reported that the Pilgangoora project will cost about A$234-million to develop, compared with the original capital cost of A$224-million. The project is on track for commissioning later this year.

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