Neometals has unveiled the results of its pre-feasibility study on its 100% owned Barrambie titanium project.
The economic assessment carried out by Snowden, and based on Capital and Operating costs developed by Sedgman Limited, indicates the potential for a viable hard-rock titanium mining and processing operation.
The PFS has highlighted the potential for the Barrambie Project to be a low cost producer of titanium dioxide (TiO2), vanadium pentoxide (V2O5) and iron oxide (Fe2O3), over a mine life of 19.6 years.
Operating and Capital costs are both valid as at July 2015 with an indicative accuracy of ±25%. All analysis is in Australian dollars and assumes conservative, real long-term prices of US$1,838/t for titanium dioxide, US$14,873 /t for vanadium pentoxide, US$520/t for synthetic iron oxide pigment and an AUD exchange rate of US$0.75.
PROJECT DEVELOPMENT AND CORPORATE STRATEGY
Following the robust Pre-Feasibility Study results, Sedgman support the project progressing to a full Feasibility Study to assess the many opportunities which have been identified to improve the economics of the project via optimisation of the flow sheet.
As a next step, Neometals plan to undertake full pilot plant evaluation of the proprietary hydrometallurgical technology, with this work planned in the current financial year. Subject to the success of the full pilot scale test work it is Neometals’ intention to proceed to Feasibility Study (FS).
The currently preferred project development strategy is to advance the project to a suitable stage of evaluation to obtain a titanium industry partner who would fund and operate the development of the Barrambie project on a shared equity or joint-venture basis.
Neometals managing director Chris Reed said: "We are pleased to have completed another step towards transforming Barrambie into a globally competitive titanium dioxide producer and supplier.
"The next step in the project’s development plan is to complete a full-scale pilot plant test program before we commit to a Feasibility Study. In parallel we will commence a formal partner selection process to commercialise this globally significant project."