http://www.fyiresources.com.au/media/files/20180925-FYI-PFS-announcement-small.pdf
in addition to the economic figures on the front page:
improved economics through byproducts and H5N detailled in the BFS.
The mining schedule is summarised and is based on mining campaigns commencing every 3years with total mining being on average 430kt per campaign. A high stockpile balance at the end ofeach mining campaign, reducing over the next 3 years as ore is reclaimed and fed to the beneficiationplant (page27).
These results exceeded the Company’s target grade of 99.99% Al2O3 (4N) and will become the standardbenchmark grade. Independent verification was undertaken by independent metallurgical laboratory,Bureau Veritas.The testwork completed for the PFS, indicated that a purity of 99.997% Al2O3 could be achieved consistentlyand reliably (page29).
The PFS study contemplates an initial 24,500 tpa of beneficiated ore being received from Cadoux and anoutput of 8,000 tpa of final product (HPA). The HPA will be packaged to the markets requirements and thentransported to Fremantle port for export. It is anticipated that commissioning will take place ahead ofproduction commencement forecast to be in CYQ2 2021. A three-quarter ramp up period in production isexpected until nameplate capacity is achieved. This ramp up is reflected in the Company’s financialforecast.The plant design is extremely efficient and is also engineered for increases in capacity – both throughproduction efficiencies and also modular expansion. This production increase is not included in theCompany’s financial modelling and forecast (page32).
The Project Schedule main deliverables are: (page40)
1. BFS Completion Q2 2019
2. Approvals and permitting completed Q4 2019
3. Off-take agreements completed Q4 2019
4. Financing commences Q1 2019
5. Construction commencement Q4 2019
6. Operations commence Q2 2021
only 24500t per year needed to get 8000t of HPA (page50)
ramp up: In the first year it is assumed that the Company will produce and sell 70%(5,600t HPA) of the annual capacity (page52)
Upside CaseIn the flow sheet design and engineering, a potential efficiency capacity increase of 2,000 tpa to 10,000tpafrom 8.000tpa has been allowed for. The increase in capacity will require an additional capital expenditureof US$40 million to install a third HCl leaching circuit. The NPV will increase by US$169 million to US$675 million.Operating expenditure per tonne will reduce by 5% to US$ 6,144/t (page54).
By-products revenue streamTesting of the kaolin in Cadoux has shown that the Project will produce material volumes of high purity quartz(HPQ) from the beneficiation at the mine site as well as inert silica from the refining of concentrate in Kwinanaas by-products. In the BFS, the Company will evaluate potential revenue streams from these products asthey have the potential to add to the project economics considerably (page57).
