Sierra Rutile Reveals Successful Dredge Study (Sierra Leone)

 Sierra Rutile Reveals Successful Dredge Study

Sierra Rutile Limited has announced the results of its feasibility study into a new large dredge.

Highlights:

1. Exceptional feasibility study economics:

– US$472 million project pre-tax NPV110;

– US$301 million project post-tax NPV10;

– 68% pre-tax IRR2, 59% post-tax IRR; and

– 12-month project payback.

2. 81,000 tonnes per annum of rutile produced, on average, in the first 10-years of the project’s life, with a further 43,000 tonnes of ilmenite and 7,000 tonnes of zircon concentrate.

3. 27-year modelled project life, with significant scope for further extensions to the project life.

4. Low cash-cost3 operation at just US$394 per tonne life-of-mine and just US$219 per tonne for the first five years.

5. Total capital cost, including contingency, of US$169 million over a 24-month project delivery timeline.

Commenting on the successful Study, John Sisay, SRL Chief Executive Officer, said, “This extensive study into the introduction of a new large dredge illustrates definitively the world-class nature of our deposit and its ability to support multiple mining units. The value of this project and its potential returns is impressive, and it further highlights the inherent value of our existing, operating assets and near-term expansions. The low-cost nature of this project provides SRL the opportunity to be an extremely profitable supplier of rutile to the market for the long-term.”

[mappress]

Press Release, October 4, 2012

Related news

List of related news articles