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Tin October 09, 2020 02:30:57 AM

Mining Changes Boost Redmoor Economics

ITRI
ScrapMonster Author
The main driver behind the improved economics was the reconfiguration of the mining plan.

Mining Changes Boost Redmoor Economics

SEATTLE (ITRI.CO.UK): A review of Strategic Minerals’ 2019 scoping study for the Redmoor deposit has revealed improved economics. The Redmoor brownfield project is one of two tin mines being developed in Cornwall, UK.

The project’s Internal Rate of Return (IRR) has now risen to 29% (up from 19%), while the Net Present Value (NPV) of Redmoor has increased by some 35% to US$ 128 million. This NPV uses the same metal price assumptions as the 2019 study, as well as a consistent discount rate of 8%.

The main driver behind the improved economics was the reconfiguration of the mining plan. Rather than extract lower grade material in the first few years of the mine’s life, the new plan cuts to the chase. The company has proposed an initial deeper access, prioritising extraction of the higher-grade mineralisation. This high-grade mineralisation was identified in Cornwall Resources’ (Strategic’s subsidiary) latest drill programme.

This change will result in greater and more immediate revenue, but will also reduce capital expenditure. Original estimates of US$ 89 million have been adjusted to US$ 86 million. The change to the mining plan also does little to affect the cost of the operation. “The life-of-mine operating cost is broadly similar at US$ 74/tonne compared to US$ 75/tonne reported in the previous study.” announced Strategic Minerals.

Courtesy: www. itri.co.uk

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