BRITISH COLUMBIA – Calgary-based West High Yield Resources is studying the preliminary economic assessment for its Record Ridge magnesium property near Rossland in the southeast part of the province.
The PEA studied a conventional open pit mine, a novel hydrometallurgical plant, a calcined magnesia intermediate product plant along with a fused magnesia production plant. The project has a net present value using a 5% discount rate of US$1.34 billion and an internal rate of return of 21%. The post-tax NPV will be US$830 million (5% discount) and the post-tax IRR will be 17%.
WHY said the initial capital cost is estimated to be US$608 million with payback occurring in the fifth year. At a mill throughput of 3,000 t/d, resources of 43 million measured and indicated tonnes at 24.6% Mg would give the mine a life of 42 years.
The previous 43-101 report covering Record Ridge was written in 2009. It is available at WHYresources.com.