LeadFX Inc.'s definitive feasibility study for constructing and operating a hydrometallurgical facility at its Paroo Station lead mine in Western Australia pegged a mine life of 15 years, a 3.3x increase over a 2015 estimate.
At the current spot price of US$2,575 per tonne of lead, the study estimated a net present value, discounted at 8%, of US$303 million, a 31.3% internal rate of return and a three-year payback period.
The two success criteria outlined in a 2017 agreement with InCoR Technologies Ltd. and InCoR Energy Materials Ltd. have been met, according to the Feb. 28 release.
Average annual revenue from the project is estimated at US$159 million. The total capital cost for the hydrometallurgical facility is estimated at US$151.1 million, with construction expected to last 18 months.
Life-of-mine operating costs are estimated at US$15.9 million, while all-in sustaining costs are estimated to be US$84.2 million.
The company has started seeking debt for the project and expects to secure funding, as well as take a final investment decision, in the third quarter.
