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Proto lifts price tag on Barnes Hill

26th March 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals developer Proto Resources and Investment on Tuesday reported that an optimised feasibility study on its Barnes Hill project, in Tasmania, had placed a A$78.4-million price tag on the development.

The project would deliver some 500 000 t/y run-of-mine nickel and cobalt to produce some 4 800 t/y of nickel equivalent.

On the base-case parameters, the project was expected to have a net present value of A$143.6-million, and an internal rate of return of 51%, and would have yearly average earnings before interest, tax, depreciation and amortisation of around A$30-million over its ten-year life-of-mine.

Proto said on Tuesday that the optimised feasibility study proved that the project was economically robust, and endorsed the company’s ability to maximise the economic potential of an undeveloped nickel laterite deposit by delivering a low-cost operating cost structure, along with a highly efficient use of capital.

Barnes Hill’s joint venture partners, which comprise Proto Resources and Metals Finance Limited, which each own a 50% stake in the project, would now continue to finalise the permitting of the project and to secure funding options for construction and project development.

Edited by Creamer Media Reporter

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