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- Mayur Resources (MRL) has completed the Definitive Feasibility Study (DFS) for the Orokolo Bay Industrial Sands Project in Papua New Guinea
- The project is estimated to requirer around $28.14 million to get off the ground, to be financed joint venture partner entirely by China Titanium Resources Holdings
- The five million tonnes per annum operation will produce vanadium titano-magnetite, DMS magnetite, construction sands and a zircon-rich valuable heavy mineral concentrate over a 15 year period
- Mayur Resources is targeting a final investment decision by mid-2021
- Shares have been trading flat for 50 cents at 2:50 pm
Mayur Resources (MRL) has completed the Definitive Feasibility Study (DFS) for the Orokolo Bay Industrial Sands Project in Papua New Guinea.
The study calculated around $28.14 million (US$20.48 million) will need to be spent to establish the five million tonnes per annum mining and processing operation.
This will be funded by Mayur’s joint venture partner China Titanium Resources Holdings (CTRH) which has committed to spending circa $34.35 million (U$25 million) to earn a 49 per cent interest in the project.
Mayur will produce several products at Orokolo including vanadium titano-magnetite, DMS magnetite, construction sands and a zircon-rich valuable heavy mineral concentrate.
This will provide multiple revenue streams, allowing for payback within a little over a year of Orokolo’s estimated 15-year life-of-project.
Over the full life-of-project, Orokolo is forecast to generate some $1330 million (US$969 million) in revenue and roughly $520 million (US$380 million) in earnings before interest, tax, depreciation, amortization.
Mayur Managing Director Paul Mulder said the study improved upon the economics calculated in the Pre-Feasibility Study.
“The results of the DFS are extremely encouraging and confirms the value of Mayur’s 51 per cent share in the Orokolo Project of circa US$67 million (~$92.05 million), which is roughly equivalent to the entire market value of Mayur Resources today.”
The next step for the company is to submit a mining lease application which it hopes will be granted in the first quarter of 2021.
In the meantime, Mayur will progress with pilot plant construction and commissioning followed by trial operations and shipments.
Dependent on potential delays from COVID-19 travel restrictions, the company is targeting a decision to mine in the second quarter of 2021.
Shares have been trading flat for 50 cents at 2:50 pm.
