Strike's Paulsens East progresses to feasibility
PERTH (miningweekly.com) – A scoping study into ASX-listed Strike Resources’ Paulsens East iron-ore project, in the Pilbara, has estimated that the project could generate between A$688-million and A$910-million in revenues over a four-year mine life.
The scoping study estimated a production rate of 1.5-million tonnes a year at a C1 cost of A$66/t, with the net present value estimated at between A$81-million and A$238-million, and the internal rate of return at between 263% and 649%.
Strike MD William Johnson said on Thursday that the results from the scoping study were highly encouraging and gave the company the confidence to advance Paulsens East to feasibility stage.
“The scoping study confirmed that Paulsens East has robust economics at current iron-ore prices, driven principally by the high quality nature of the iron-ore contained within the deposit, the low life-of-mine strip ratio and proximity to excellent infrastructure.
“The project has the potential to generate very significant cashflows for the company over an initial four-year mine life in comparison to our market capitalisation of only A$8-million, with a relatively low capital cost requirement.”
Johnson said that the project also had additional upside potential with opportunities identified to extend the mine life, improve iron-ore grades and further reduce costs, all of which would be examined as part of the feasibility study.
“Subject to the timely receipt of all necessary approvals and permits, Strike is targeting to commence production in the third quarter of 2020.”
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