“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.
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.