FYI Resources Ltd (ASX:FYI) has brought forward the mining trade-off study for its Cadoux high purity alumina (HPA) project in WA, reviewing a range of product specifications and optimising site-based operations.
A mining study is usually a component of a project’s bankable feasibility study but was expedited by FYI to integrate with other ongoing study components.
The initial results from the trade-off study follows FYI’s ongoing test work demonstrating metallurgical recoveries of greater than 99.99% HPA.
FYI managing director Roland Hill said the company’s confidence in its HPA strategy continued to increase as the level of detailed work was advanced.
Hill said: “We believe it was beneficial to bring forward aspects of the mining study along with some of the other critical and longer duration review components, such as the environmental and hydrological studies.
“[This is] to the benefit of a bankable feasibility study in the next phase of economic studies.
“The mining study has highlighted a number of positive operating options as well as some distinct project advantages and revenue streams that we continue to focus on for our project strategy development.”
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Orelogy has determined, based on recent test work indications, that FYI’s optimal operating philosophy is to:
Excavate ore and overburden from and backfill pits on a campaign bases using contract mining to minimise operating costs;
Establish a dedicated permanent fleet to manage stockpiles and product rehandling;
Develop cost effective mine scheduling and operations for the unusually low volume mining;
Minimise capital expenditure leveraging off the site’s natural advantages; and
Investigate additional potential by-product revenue streams.
Cadoux’s operational parameters suggest the emphasis of the mining trade-off study be developed with a distinctive mining and beneficiation model.
This would be focused on operational flexibility and control of feedstock quality as well as maximising project cashflows.
Preliminary mine site infrastructure layout for the Cadoux Kaolin Project
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The study has so far identified several key advantages including: a mining schedule of around 240,000 tonnes of ore per year; multiple operating pits for selective mining; and infrastructure and scheduling to support a long mine life.
The mining study will be progressed alongside other components of the prefeasibility study, ensuring the overall integration of the economic review is detailed, robust and consistent for Cadoux’s operations.
FYI aims to deliver a commercial high-quality HPA product with low production costs into rapidly expanding tech and battery-related markets.