Australian Mines fast-tracks
Australian Mines says the prefeasibility study (PFS) for its high-grade Flemington scandium project, in Australia, will be fast-tracked and expanded, to include studies assessing the potential to increase yearly scandium oxide (Sc₂O₃) production from the 60 t/y contemplated in the scoping study to up to 180 t/y, to address any supply shortfalls and growing demand.
The PFS will be undertaken in parallel with a new drilling programme aimed at testing potential extensions to the existing mineral resource and providing additional material for metallurgical testwork.
The PFS follows the delivery of a compelling scoping study that demonstrated strong economics with significant leverage to market-aligned pricing scenarios, the company points out.
This comprised a post-tax net present value (NPV) of about $860-million and an internal rate of return (IRR) of 74% at $3 000/kg Sc₂O₃ (market-aligned pricing scenario); and a post-tax NPV of about $270-million and IRR of 32% at $1 500/kg Sc₂O₃ (mine design price).
Moreover, there was an initial estimated capital cost of $125-million for a 60 t/y Sc₂O₃ operation, with estimated cash costs of $561/kg Sc₂O₃; a 28-year mine life based on a 2.09-million-tonne production target; an average feed grade of 573 ppm scandium over the first 15 years; and 2.09-million tonnes processed.
The PFS is anticipated to take six to nine months to complete.
“Following the successful delivery of the Flemington scoping study in April, we are pleased to have commenced the PFS and to assess opportunities to further unlock the potential of this high-grade scandium asset.
“Recent developments in the scandium market, particularly the potential growth in scandium demand associated with Bloom Energy’s expanding solid oxide fuel cell deployment, reinforce the strategic importance of developing new, scalable Western scandium supply,” says MD Andrew Nesbitt.