Neometals Limited has announced that it completed an update to its Association for the Advancement of Cost Engineering Class 4 Pre-Feasibility Study (PFS) of the Barrambie Titanium Project.
According to the company, the PFS update has provided compelling financial metrics so far, allowing the Barrambie Titanium Project to move into a definitive Feasibility Study phase.
The update includes mining from titanium-rich eastern bands at the site, which will use a staged capital approach to the development, namely an initial $78.1 million capital requirement for the one-year production of direct shipped ore (DSO) and a further $137.2 million to construct a crush, mill, beneficiate plant that will support mixed gravity concentrate (MGC) production efforts.
Neometals said the staged development approach will enable it to stage capital investments designed for earlier project cashflows.
It noted that the update was for the production of DSO and MGC from Barrambie and added that it followed recent successful smelting trial results and the announcement of an off-take term sheet with Jiuxing Titanium Metals Co. Limited.
Neometals has produced chloride-grade slag from the smelting on Barrambie MGC at Jiuxing’s commercial smelter in China to reduce market risk and enable off-take in a global market with transport pricing.
The company is now conducting an early contractor engagement process to support the PFS update and form a key component of the due diligence required by a successful build-own-operate partner.
Commenting on the update, Neometals Managing Director Chris Reed said the company is looking forward to taking the project through the final Feasibility Studies and approvals stages to develop the strategic asset.
“This lower capital, staged development of Barrambie would speed the addition of approximately 4 per cent to global supply, our customer Jiuxing, is the largest chloride-grade titanium slag producer in the largest titanium market, China,” he added.
