The study contemplates an open pit and vertical pit growth, which would require an preliminary capital estimate of A$96-million ($69m) to develop. The pre-tax internet current worth is A$343 million ($245m) and the inner charge of return of 59%.
Lucapa’s managing director Stephen Wetherall stated that examine confirms the “nice potential” of an revolutionary hybrid methodology to reopen Merlin, which would be the firm’s third diamond mine.
Merlin is positioned in Australia’s Northern Territory, about 720 km south-east of Darwin. It is going to be the nation’s solely producing diamond mine , following the closure of Rio Tinto’s iconic Argyle mine in 2020, after 37 years in manufacturing.
It was operated by Rio Tinto till it was purchased by North Australian Diamonds, later renamed Merlin Diamonds, in 2004. However the firm did little or no business processing and was wound up final Might.