NEW BRUNSWICK – Northcliff Resources of Vancouver says the feasibility study for its 100% owned Sisson tungsten-molybdenum project 60 km northwest of Fredericton confirms that a long life, open pit operation is technically and economically possible using bulk tonnage methods.
The study reports a pre-tax net present value of $714 million at an 8% discount rate, an internal rate of return of 20.4%, and a 4.1-year payback on initial capital expenditures of $579 million at long term metal prices of US$350/tonne for ammonium paratungstate (APT) and US$15/lb for molybdenum. On a post-tax basis, Sisson has a $418 million NPV, a 16.3% IRR and a 4.5-year payback on initial capital. (All values are expressed in Canadian dollars unless otherwise noted.)
The Sisson property has a 334-million tonne proven and probable mineral reserve grading 0.066% WO3 and 0.21% Mo, containing 22.2 million tonnes of tungsten and 154.8 million lb molybdenum. Pre-production capital costs will total $578.8 million, chiefly for the mine, a concentrator and an APT plant.
Visit NorthcliffResources.com to view the January 2013 corporate presentation.