Venture Minerals (ASX:VMS) has released their Feasibility Study on their 100% owned Mt. Lindsay Tin Project.
The Bankable Feasibility Study outlines a $200M capex, which includes a 35% increase in capacity to 1.75Mtpa, good for a mine life of 9 years based on the current 14M tonnes of reserves. We expect the life of mine to be extended, as the company is still exploring on its tenements and has discovered more tin at the Big Wilson project, approximately 6 kilometres from the Mt. Lindsay project. At Big Wilson, Venture drilled 17 meters of 2% Tin.
The project has a payback period of 4 years, and a NPV8% of A$143M, or approximately A$0.50/share. We would like to remind you that this does not include their DSO iron ore operations, which will start next year. It is possible the cash flow generated through these iron ore sales might cover the majority of the equity funding for the Mt. Lindsay project.
We will add Venture Minerals on a dip.
Download the full press release here
Disclosure: The author holds a (small) long position in Venture Minerals Ltd. Please see our disclaimer for current positions.
