Trevali Mining (TSX: TV; US-OTC: TREVF) has launched a feasibility examine for the growth of its Rosh Pinah zinc-lead-silver mine in Nambia to 1.3 million tonnes per yr from 700,000 tonnes per yr.
At an preliminary capital price of US$111 million, the growth will embody modifications to the mill, a brand new paste fill plant, a water remedy plant, a brand new portal, decline and materials to the WF3 deposit, plus floor and underground infrastructure.
As soon as the venture is commissioned, Trevali expects to scale back its working prices by about 26% on a per-tonne-milled foundation.
The corporate owns 90% of the underground mine and mill, 800 km south of Windhoek. The remaining 10% is held by Namibian and worker empowerment plans.
Assuming a optimistic funding choice, detailed engineering for the 86% mill throughput improve and procurement of lengthy lead objects will start by the top of this yr. Building will observe in the midst of subsequent yr, with industrial produced anticipated round mid-2024.
The after-tax venture economics reveal a internet current worth (at a 8% low cost price) of US$156 million, and inside price of return of 58%, and a payback interval of 4.6 years. Free money circulate of US$290 million is estimated.
The grinding circuit on the mill will obtain an improve that sees the set up of a single stage semi-autogenous (SAG) mill and pebble crusher. Work may also embody major crushing upgrades and an ore mixing space. Flotation, thickening, filtration and pumping capability may also be upgraded.
The event of a devoted portal and decline to the WF3 underground deposit will help the elevated mining price and cut back working prices. New 60-tonne vans will ship the ore to a brand new floor major crusher. New massive load-haul-dumpers (LHDs) may also be bought. Ore transported from different space will probably be transported to the prevailing underground crusher within the present 30-tonne vans.
The deliberate paste fill plant will probably be designed to function on the present mining price and the 1.3 million tonne-per-year eventual price. A water remedy system on the paste fill plant will cut back the quantity of wanted to 0.5 cubic metre from 1.5 cubic metres.
The venture would cut back the venture’s carbon depth and water consumption on a per-tonne-milled foundation. The underground mine will probably be modernized (it started operations in 1969).
Rosh Pinah has assets (together with reserves) of 18.5 million measured and indicated tonnes grading 7.4% zinc, 1.8% lead and 25.8 grams silver per tonne in addition to 1.6 million inferred tonnes at 8.3% zinc, 2.2% lead and 54.9 grams silver per tonne.
Trevali has signed a 15-year solar energy buy settlement with Rising Markets Vitality Providers Firm (Emesco) to produce 30% of the ability Rosh Pinah wants. The mounted price agreed within the contract is predicted to scale back power prices on the venture by 8%.
In a analysis notice, Rene Cartier of BMO Capital Markets famous that “financing discussions are ongoing with TV’s lending syndicate in addition to different monetary establishments on securing venture debt” including that “potential asset gross sales, or silver stream, is also a part of the answer.”
“On timing, development is predicted to begin in mid-2022, with industrial manufacturing anticipated mid-2024 (beforehand begin in Q1/22, industrial in H1/23),” he wrote. “Capital prices have elevated to $111M, from $93M, and together with a contingency of $8.8M.”