TUNGSTEN STUDY: Updated PEA for Grey River deposit remains positive

NEWFOUNDLAND – Playfair Mining of Vancouver says the preliminary economic assessment for its 100% owned Grey River tungsten deposit on the south coast indicates that a mining project is potentially viable and will return a positive net...

NEWFOUNDLAND – Playfair Mining of Vancouver says the preliminary economic assessment for its 100% owned Grey River tungsten deposit on the south coast indicates that a mining project is potentially viable and will return a positive net discounted cash flow. Golder Associates prepared the PEA.

Using the base case economic parameters, Playfair estimates the pre-tax cash flow to be positive at US$15.5 million over a mine life of about nine years, and increases to US$75.3 million at a tungsten price of US$21/lb. Current metal prices are close to US$20/lb.

The updated mineral inventory includes 1.2 million tonnes at 0.730% WO3 or 18.8 million lb of tungsten trioxide in the inferred resource. Access would be by decline, and longhole open stoping employed to mine 400 t/d of ore. Only the No.10 vein is designated for underground mining, and the copper present in the deposit is not included in the mineral inventory.

According to the PEA, pre-production capital costs are US$32 million, and life-of-mine costs will be US$50 million.

Additional details are available on Playfair’s website at PlayfairMining.com.

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