THE FEASIBILITY OF LEAD METAL PRODUCTION AT LEADFX'S PAROO STATION LEAD MINE

摘要

The Paroo Station lead mine, located in Western Australia and owned by LeadFX, has historically produced a lead flotation concentrate from a predominantly lead carbonate (cerussite) orebody. The shipment of the cerussite concentrate from the minesite to smelters is subject to strict environmental controls and high product handling, logistics, treatment and refining charges due to the concentrate containing 67% lead, the transport distance and the lack of intrinsic fuel value and by-product elements. LeadFX needed to implement an innovative solution in order to process the concentrate on-site, therefore reducing environmental risk and cost.InCoR Technologies, with SNC-Lavalin, has completed a Definitive Feasibility Study (DFS) for the construction and operation of a Hydrometallurgical Facility at Paroo Station, which will allow LeadFX to process the concentrate on site and produce LME grade lead metal ingots for shipment. The process technology, accessed via an exclusive license to InCoR Technologies from BASF SE and the University of British Columbia (and now exclusive sub-license to LeadFX Inc.), uses methane sulphonic acid as the lixiviant for leaching and electrowinning of lead. The feasibility study included a drill program and an extensive bench scale and pilot scale flotation and hydrometallurgical testwork and development program at ALS Global Metallurgical Services laboratories in Perth.The DFS concluded that the construction of the process plant was technically feasible and financially viable. Importantly, the construction of the Hydrometallurgical Facility will result in value added production of lead metal in Western Australia and significantly improved mine economics. The highlights of the study were: 15 year Mine life - a 3.3 times increase? 1.19 million tonnes contained lead in Ore Reserves (JORC 2012) - 2.5 times increase ? >85% conversion of Mineral Resources to Ore Reserves? Hydrometallurgical Facility capital cost estimate: US$151.1 million? Acid leaching, electro-winning and melting flowsheet to produce up to 70,000 tpa of lead metal ingots? Life of Mine C1 cash cost: US$1,254/t Pb (US$0.57/lb Pb)? NPV of US$191 to 303 million and IRR of 23.5 to 31.3%pa at long-term LME lead price of US$2,2502 to 2,575/t Pb (US$1.02 to 1.17/lb Pb)LeadFX is progressing to Front End Engineering Design (FEED), environmental permitting and financing and has a final investment decision target of Q3 of 2018.