King River Resources Provided initial CAPEX and OPEX estimates for its Processing Facility and Acid Plants 

  • Mar 21, 2019 AEDT
  • Team Kalkine
King River Resources Provided initial CAPEX and OPEX estimates for its Processing Facility and Acid Plants 

On 21 March 2019, mining and exploration company, King River Resources Limited (ASX: KRR) provided a Prefeasibility Study update on the company’s wholly owned Speewah Specialty Metals (SSM) Project, located in the East Kimberley of Western Australia. In the update, the company has provided Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) cost estimates of its Processing Facility and Acid Plants.

The company has estimated capital expenditure of A$359 million for its Processing Facility and A$580 million for its Acid Contact and Regeneration Plants. Further, the company has estimated operating expenditure of A$46.44/tonne mined for both Processing Facility and Acid Plants. Although the Opex is below the company’s initial target range but it will require additional costs added which includes mining, power plant operation, borefield water, tailing disposal, campsite, and product transport and sales. It should be noted that the CAPEX costings include a 20% contingency.

The company’s board is encouraged by these initial CAPEX and OPEX estimates, as they have fallen within the lower range of KRR’s initial target of US$650-750 Mn for a three-commodity project (V2O5, TiO2 and Fe2O3). These results will help the company in focusing on future test work and studies.

The Processing Facility comprises three main units- Beneficiation Circuit, Agitated Tank leach Circuit, Metal Recovery Circuit. The Sulphuric Acid Plant is the heart of the process plant which produces sulphuric acid, steam, and electricity to drive the entire process.

The company is investigating various strategies and trade-off studies to help further reduce the capital and operation costs which will be quoted at ±25% accuracy in the Prefeasibility Study of SSM project. The SSM project plan is to produce vanadium, titanium and iron products, along with other potential high-value specialty commodities.

One of the strategies that the company will investigate to reduce the capital and operation costs is regarding reducing the acid consumption which will include investigating shorter leach times, optimizing agitation, pulp density and grain size, and increasing the feed and concentrate grades and reducing the mass yield.

Following the release of this update, the company’s shares were placed in a trading halt, pending the company releasing an announcement regarding ASX queries and clarification of Capex and Opex information included in the Specialty Metals Project PFS update. The trading halt will remain in place until the earlier of the commencement of trading on Monday 25 March 2019, or when an announcement is made.

The stock last traded at a price of $0.029, up by 11.538% during the day’s trade with a market capitalisation of ~$32.2 million as on 21 March 2019. The counter opened the day at $0.027 and reached the day’s high of $0.030 and touched a day’s low of $0.027 with a daily volume of ~ 2,713,826. It had a 52-week high price of $0.190 and touched 52 weeks low of $0.026, with an average volume of ~1,139,306.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK