Name of the Project
Urquhart bauxite project.

Location
The project is located on Queensland’s Cape York, in Australia.

Project Owner/s
Cape York HMS & Bauxite Project Joint Venture (JV), which comprises Oresome Australia, a wholly owned subsidiary of Metallica Minerals, and Ozore Resources.

Project Description
An independent prefeasibility study (PFS) has supported the development of the project.

The project consists of two bauxite plateaus – Area A and Area B – that are wholly contained within mining licence 100044.

The project has a targeted production rate of 1.5-million tonnes a year, producing 6 532 t/y of saleable product over a 5.5-year mine life.

The proposed mining operations are very simple, with the deposit being mined in 160-m-wide strips, which will start in the lower strip ratio and higher-grade material Area A. Strips will be mined contiguously to allow for short hauls to the nearby mined-out strip for dumping overburden (predominantly sand cover) back in-pit, resulting in the continuous rehabilitating of mined-out areas. The target bauxite horizon ranges in thickness from 0.5 m to 4 m and averages 1.5 m. Overburden thickness varies and is thinnest in the eastern part of Area A, which is scheduled for initial production. In scenarios 1 and 2, there will be no screening of bauxite material. Scenario 3 allows for stockpiling of transitional material.

Potential Job Creation
The JV will have minimal staff on site to manage contractors and the shipping of direct shipping bauxite to clients.

Net Present Value/Internal Rate of Return
The updated PFS estimates a pretax net present value, at a 10% discount rate, of A$47.3-million, on sales of 6.5-million tonnes of Urquhart’s proven and probable reserves. The project has a post-tax internal rate of return of 364%. Payback is estimated at 2.2 years.

Capital Expenditure
The updated PFS has confirmed start-up capital of A$2.2-million.

Planned Start /End Date
The highest-margin bauxite in Area A is slated for first production in 2019.

Latest Developments
Metallica Minerals has identified three potential logistic options for its Urquhart bauxite project.

An updated prefeasibility study for the Urquhart project is expected to determine the appropriate logistical option, with the study scheduled for completion by the end of December.

Once an appropriate logistical option had been identified, Metallica will progress to get regulatory approvals for the logistical options.

Metallica was forced to delay mining at Urquhart in April this year after the company failed to access port facilities for the bauxite project. The company had undertaken negotiations for a possible priority access to the barge loading facility owned by Green Coast Resources at Hey Point.

However, the negotiations failed to result in a viable commercial contract that would enable Metallica and its joint venture (JV) partner to use the Hey Point infrastructure during 2019.

The company has said that the three new options under consideration include the construction of a shiploader adjacent to the Urquhart heavy minerals sands (HMS) mining lease, owned by the JV, with a conveyor crossing over Roberts Creek from the bauxite lease to the HMS lease; the construction of a shiploader adjacent to the HMS mining lease and a 17-km haul road leading from the bauxite resource through to the HMS area; and a barge-loading facility adjacent to the bauxite mining lease, which will also require a jetty.

Metallica has noted that a key component of the future shiploader option analysis will include working towards a funding solution as well as various government, traditional owner and stakeholder approvals, as well as agreements for the substantial capital costs required for construction.

Key Contracts and Suppliers
IMC Mining (updated PFS) and LCR Group (mining and haulage operations at Urquhart).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Metallica Minerals, tel +61 7 3249 3000, fax +61 7 3249 3001 or email admin@metallicaminerals.com.au.