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Rum Jungle kicks off BFS at Ammaroo phosphate project

Rum Jungle Resources Ltd. has kicked off the bankable feasibility study for its Ammaroo phosphate project in Northern Territory, Australia, it said Sept. 29.

The study will be completed in parallel with the environmental approvals process and the completion of an environmental impact statement, which is expected to take 12 to 15 months.

The study will focus on the development of a surface mining operation, a flotation beneficiation facility, and associated site and off-site infrastructure with a maximum annual capacity of 2 million tonnes of export-quality phosphate rock concentrate.

A preliminary feasibility study in September 2015 estimated Ammaroo to have an indicative ungeared net present value of up to A$1.41 billion, using a 10% discount rate, and internal rate of return of 19%, both on a posttax basis. Total sales revenues were pegged at A$22.97 billion over a 20-year mine plan, with A$8.29 billion in operating costs.