Ann: TMT Delivers robust Gabanintha pre Feasibility Study, page-4

Highlights:

TMT DELIVERS ROBUST GABANINTHA PRE FEASIBILITY STUDY;
DIRECT PROGRESSION TO DEFINITIVE FEASIBILITY STUDY HIGHLIGHTS PRE-FEASIBILITY STUDY CONFIRMS GABANINTHA AS A HIGH VALUE, RELATIVELY LOW RISK AND TECHNICALLY STRONG PROJECT.
STUDY BASED ON INDICATED MINERAL RESOURCE COMPONENT (21.6MT AT 0.9% V2O5) OUT OF GLOBAL MINERAL RESOURCE OF 119.9MT AT 0.8% V2O5.
DELIVERS MAIDEN PROBABLE RESERVE OF 16.7MT AT 0.96% V2O5.
PROJECT METRICS COMPARE VERY FAVOURABLY TO GLOBAL PEERS.
BACKGROUND Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to announce the results of the pre-feasibility study (“PFS”) on its 100% owned Gabanintha Vanadium Project (“Gabanintha” or “Project”). Details of the PFS are attached, including the PFS Report Executive Summary as an Appendix to this release, with key highlights summarised in the table below. 1 – estimated to confidence level of -15% to +25% Managing Director Ian Prentice commented; “This is an outstanding result for the technically robust, extremely high quality Gabanintha Project in a vanadium market environment that is desperate for injection of new production, with considerable upside expected from the work to be completed during the upcoming Definitive Feasibility Study”
Pre-feasibility Study Highlights1
Targeted Annual Production Rate 13,000 tpa V2O5
Estimated Processing Life (LOM) 13 years
LOM Revenue A$4,935 million
LOM EBITDA A$3,070 million
Pre-tax NPV (10% discount rate) A$1,277 million
Pre-tax Internal Rate of return 55 %
Post-tax NPV (10% discount rate) A$850 million
Post-tax Internal Rate of return 43 %
Average Operating Cost US$4.27/lb V2O5
Capital Expenditure A$380m (US$284m)
Payback of Capital 3.4 years