The primary focus of King Island Scheelite Limited (KIS) is to redevelop the tungsten mines on King Island (Tasmania).
After a long history of mining Tungsten on the island the former operations closed in 1990 due to low tungsten prices (US$50/mtu of concentrate). With prices currently above US$300/mtu KIS will redevelop this world class deposit through the Dolphin Project. This project will be completed in stages to ensure risks are managed and capital requirements minimised.
Tenements and approvals are in place, however require some amending to reflect the staged approach to this development.
Resources & reserves
- Tailings (see previous announcements).
- Dolphin (see previous announcements).
- Bold Head (see previous announcements).
- Dolphin South (underground drilling planned to assess potential extension of mineralisation).
- High grade resource with potential to extend the mine life at Dolphin.
- Recover tailings for retreatment at 1,300,000tpa from mid 2013.
- Dewater and rehabilitate declines of the former underground mines.
- Recommence underground mining to produce 350,000tpa at grades averaging 1.30% WO3 mid 2014.
- Good understanding of former mining methods and underground conditions.
- Construct plant to process tailings initially producing 1,600t of WO3 per annum.
- Compete remainder of the plant once dewatering and tailings production is underway.
- Production 3,500t of WO3 per annum once underground operations recommence.
- Well understood metallurgy with extensive history and testing of recoveries.
- Definitive Feasibility Study completed in early 2012.
- Demand for tungsten concentrate remains strong.
- Capital and operating cost assumptions have been updated.
- Capital outlay of $133million.
- NPV estimated greater than $100million.
- IRR of 25%.
- Strong cash flow expected from this project.
KIS has also entered joint venture agreements with Pleiades Resources Pty Ltd to explore an area of historic high grade copper and tin-tungsten mineralisation. The Balfour Joint Venture (BJV) was established in 2009 and ground based gravity surveys undertaken with encouraging results. KIS currently holds a 70% interest in the BJV.
KIS continues to look for opportunities to grow and to that end is actively assessing potential strategic alliances to increase future sustainable production.