Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Metal Tiger says test work indicates lower costs at T3 copper development

The Feasibility Study for T3 remains on track to complete in March 2019
copper wire
T3 is in Botswana

Metallurgical test work at the T3 copper project in Botswana has indicated lower production costs than previously estimated, Metal Tiger PLC (LON:MTR) reported today.

“The findings of the feasibility level metallurgical test work are particularly encouraging with the coarser grind metal recoveries supporting a reduction in anticipated capital, operational and power costs versus the Pre-Feasibility Study stage model”, said Michael McNeilly chief executive.

READ: Metal Tiger reports encouraging copper showings from T3 satellite

A Pre-Feasibility Study (PFS) Base Case in January for an open pit mine indicated an estimated US$730mln of underlying earnings (EBITDA) over 9 years, which rises to US$1.1bn over 12 years.

The PFS also indicated a net pre-tax cash flow of US$530mln, inclusive of development capital, annual free cash flow of US$77mln before tax from the start of production and a payback from the start of production of 2.7 years.

McNeilly added the Feasibility Study for T3 remains on track to complete in March 2019, with the engineering and design work both on schedule and within budget.

Botswana Power has also started building the regional electricity grid infrastructure including a power line due to pass within 12km of the planned mine site.

The first stage of the accommodation village is complete.

T3 is being developed through a joint venture with MOD Resources.

Metal Tiger has agreed to sell its 30% stake in the JV to MOD in return for shares plus options in the Aussie-listed miner.

That deal is scheduled to complete by the end of the month.

MOD is the operator at T3 and said it is working with debt finance advisers over funding for the project.

An environmental report is expected to be submitted in the final quarter of the year.

View full MTR profile View Profile

Metal Tiger Timeline

Newswire
October 01 2018

Related Articles

cobalt
October 26 2018
The company is confident the assays received from this drilling campaign will increase the existing resource of 79,400 tonnes at 0.43% cobalt.
Cadoux kaolin ore is suitable for producing high purity alumina
October 29 2018
The ore reserve underpins a production rate of 8,000 tonnes per annum of high purity alumina for 52 years.
RC drill rig on site at Gabanintha
Thu
The results will feed into a global resource upgrade for the flagship project.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use