Winchester proves up for Korab
PERTH (miningweekly.com) – A prefeasibility study (PFS) into ASX-listed Korab Resources’ Winchester magnesite direct shipping ore deposit, in the Northern Territory, has estimated that a capital injection of some A$4-million would be required to develop the project.
The study was based on a conceptual mine that could operate at various capacity levels, from 250 000 t/y, 500 000 t/y and one-million-tonne-a-year run-of-mine capacity.
The project’s ultimate output would depend on offtake or long-term sales agreements, Korab said on Tuesday.
Capital costs have been estimated on the development of openpit operations, and assume that contractors would be used for a majority of the project operating tasks.
Operating costs for staged operation would range between A$29/t for the 250 000 t/y operation, to A$21/t for the one-million-tonne-a-year operation, with production ranging from 200 000 t/y of course saleable magnesite, to 800 000 t/y of coarse saleable magnesite.
The PFS was based on a total resource of some 16.6-million tonnes, grading 43.2% magnesite, of which 12.2-million tonnes was classified as indicated and 4.4-million tonnes as inferred.
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