Owendale Project.


Robust financials

The DFS demonstrates a very robust financial case, based on a mine life of 30  years

Low capital expenditure

The DFS indicates low capital expenditure, as market demand for lightweight aluminium-scandium grows

High-grade, large resource base

Very large and high-grade scandium resources, which are amenable to simple, low-cost, open-cut mining techniques

Conventional, well tested process route

Ore mined at Red Heart will be processed through a conventional high pressure acid leach circuit (“HPAL”) to produce 99.99% high-purity scandium oxide

Access to infrastructure

he processing facility will utilise an existing industrial site in Condobolin, giving access to labour, water, power, rail, and sealed roads

Potential for other revenue streams

Using the HPAL process route provides a potential future opportunity to generate cobalt, nickel, platinum and aluminium products

The Project

The Owendale Project in New South Wales has the potential to be Australia’s first scandium producer with a shallow depth allowing open-pit mining, exceptionally high scandium grades and appreciable cobalt, platinum and nickel credits.

In December 2018, our Definitive Feasibility Study confirmed the technical and financial viability of constructing a simple, low-strip ratio, open-cut mining operation and processing facility producing 20 tonnes per year of scandium oxide. An optimised ore reserve model resulted in highly favourable key development metrics demonstrating a 30-year mine life at very high scandium grades.

Platina remains focussed on a staged development strategy, which was adopted to match market

demand. Platina continues to seek off-take interest and examine future development options.

Location

The project is located in a premier mining precinct, 350km west of Sydney in New South Wales. Major gold and copper mining operations including Cadia, North Parkes and Lake Cowal are in close proximity to the project which is close to existing rail, road, water and grid power infrastructure. The district is also becoming an important source of technology metals including scandium, cobalt, nickel and high-purity alumina. Ore is to be trucked 70km from the Red Heart Mine to a processing site in Condobolin which will use conventional high pressure acid leach (HPAL) circuit to produce a 99.99% high-purity scandium oxide.

Positive DFS

The DFS has confirmed the technical and financial viability of constructing a simple, low-strip ratio, open-cut mining operation and processing facility producing scandium oxide. Based on a mine life of 30 years, the project generates an after-tax net present value in real terms (8% discount rate) of $US166 million (A$234 million), post-tax IRR of 29% and payback period of 5.3 years. The financial model incorporates an average scandium oxide price of $US1550/kg over the life of the project.

 

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> Like other laterite projects using the HPAL process route, once all the minerals are in solution from the HPAL process, recovery is achievable at relatively low incremental cost, thus providing a potential future opportunity to generate cobalt, nickel, platinum and aluminium products (to make high purity alumina) and generate additional cash flow.

For more information on the DFS, please visit:

> POSITIVE DEFINITIVE FEASIBILITY STUDY