A prefeasibility study (PFS) into the Cape Flattery silica sands project, in North Queensland, has estimated that the project would require a capital investment of A$79.4-million.
ASX-listed Metallica Minerals on Monday revealed that the project would produce some 1.35-million tonnes a year of saleable production over a project life of 25 years, based on a maiden ore reserve of 46-million tonnes at 99.18% silicon dioxide.
The PFS estimated a pre-tax net present value of A$290-million and an internal rate of return of 34.9%, with a cash revenues projected at A$2.1-billion. The project’s pay-back period has been estimated at just under four years, with life-of-mine operating costs estimated at A$1.1-billion and C1 costs estimated at A$33.77/t.
“With an impressive ore reserve, robust financial outcomes and a modest capital cost from this important pre-feasibility work, the company is excited about the project’s potential and the next steps in its development. We are moving forward to undertake a DFS with confidence and are keen to take our place as an important contributor to Queensland’s strategy to deliver new economy minerals to a growing global silica sand market,” said Metallica Minerals executive chairperson Theo Psaros.
“The world’s markets are transitioning to lower-carbon energy products, so there’s booming demand for the high-quality silica sand Cape Flattery plans to export. That will bring benefits and opportunity not only for Cape Flattery’s local communities in Hope Vale and Cooktown, but to Queensland and Australia. We are already building strong and supportive partnerships locally, and are embedding high environmental, social and governance standards in our decision-making and operational process planning.
“Advances like the improved design of our own jetty, now 100 m shorter than in our initial planning – demonstrate our commitment to practical innovation. We also respect there is further work to do in the definitive feasibility phase on transhipping operations and final metallurgical processing plans, and have an experienced team assembled to drive the next stages.
“Cape Flattery is an outstanding opportunity to develop an efficient, environmentally responsible and financially successful silica sand export operation for the benefit of all our stakeholders. We will now progress with further evaluation and approvals processes, including undertaking the definitive feasibility study this year. Our goal is to be exporting silica sand towards the end of 2024,” said Psaros.
