R/€ = 16.27 Change: 0.34
R/$ = 14.55 Change: 0.26
Au 1341.78 $/oz Change: 6.26
Pt 798.45 $/oz Change: -0.59
 
 
R/€ = 16.27 Change: 0.34
R/$ = 14.55 Change: 0.26
Au 1341.78 $/oz Change: 6.26
Pt 798.45 $/oz Change: -0.59
 
 
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Tando's SPD proves viable

3rd May 2019 BY: Esmarie Iannucci
Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – A scoping study into ASX-listed Tando Resources’ Phase 1 SPD vanadium project, in South Africa, has demonstrated that the project is technically and financially viable.

The Phase 1 project is based on a 2.2-million-tonne-a-year standalone operation, which is expected to produce an average of 0.79-million tonnes a year of vanadium concentrate, over a 25-year mine life.

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The scoping study has estimated a pre-production capital requirement of between $18.8-million and $120-million, with operating costs estimated at $11.7/t.

The life-of-mine earnings before interest, taxes, depreciation and amortization for the SPD project have been estimated at between $234-million and $431-million, with the net present value estimated at between $68-million and $138-million, and the pre-tax internal rate of return at between 48% and 86%.

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“The scoping study confirms the potential for Phase 1 to be an early, low-cost starter operation generating strong margins of $17-million a year, with a short payback period of less than two years due to the high-grade nature of the mineralisation and the low capital cost requirements of $18-million,” said Tando MD Bill Oliver.

The scoping study is based on an indicated and inferred mineral resource of 612-million tonnes, grading 0.78% vanadium pentoxide.

Tando is currently working on binding offtake agreements with a number of interested parties, and following this, will evaluate a number of potential financing options for SPD. 

EDITED BY: Creamer Media Reporter
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