[miningmx.com] — VILLAGE Main Reef says it is looking for a partner to
advance the sole platinum asset in its portfolio, Lesego, as a pre-feasibility study
(PFS) shows a possible return rate of 18% for the asset.
The company on Tuesday said the PFS showed Lesego could be profitably mined at
300,000 tonnes per month to produce 500,000 oz of PGMS, as well as over 8,000
tonnes of nickel and copper per year.
An updated resource estimate showed 39.03 million ounces of PGMs in 204 million
tonnes of ore.
The peak funding requirement for such a mine would be R7.5bn, with payback after
five years of production.
“This indicates a robust business case returning . 18.7% [on investment] and a net
present value of R6.7bn, using a real discount rate of 10%,’ read a company
statement.
Long-term metal prices of $2,000 per ounce for platinum, $750 for palladium,
$5,100 for rhodium and $1, 450 for gold have been applied – projections that were
obtained from a study commissioned by Stephen Forrest and Associates, based in
Oxford.
“The further work conducted on this ore body has revealed a robust business case to
build a mine,’ said Marius Saaiman, joint CEO of Village. “Given the size and scope
of the project, we continue to believe that it would be optimally suited to be
exploited by a bigger company focused on PGM assets, and as such we continue to
engage with potential strategic partners.’
For now, Village has started with the definitive feasibility study, expected to be
completed in 2013.
