Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to announce that it has completed a Feasibility Study (Study or FS) to investigate the potential to expand the production of manganese concentrate at the Company’s 100% owned Butcherbird Project (Project), located in the southern Pilbara region of Western Australia.
Butcherbird Expansion Feasibility Study Targets 1.1 Mtpa Manganese Production to Capture Economies of Scale.
A strong result supporting progress toward a Decision to Mine.
The Study demonstrates strong economics with robust economic returns and rapid capital payback. The financial summary of the Study outcomes are shown below.
The FS examines the expansion to 1.1Mtpa manganese concentrate production using expanded open-cut mining methods, a modified primary comminution circuit and a dense media separation (DMS) back-end solution to optimise grade and recoveries.The expansion establishes Butcherbird as a low-cost Mn operator (USD 2.76/dmtu C1 cost) able to produce at a cost lower than the low manganese sale price points seen within the Mn market.The FS utilises all the available measured and indicated resources within the mine plan supporting this Study. The Company plans to undertake infill drilling in areas containing Inferred Resources, outside the current mine plan, within the next 12 months targeting an additional 20-25 years of mine reserves at the proposed production levels.The Measured, Indicated and Inferred Mineral Resources used to support the 7.2 years mine life from 2024 to 2031 represents 36.0% of the total mineral resource inventory within the granted mining lease M52/1074.Low capital requirement of AUD 49.8M capital.
Average base case annual operating cashflow of AUD 57.3M at full production.No changes to the Proven and Probable Ore Reserve of 49.2Mt at 10.2% Mn containing 5.0Mt Mn (4.1Mt Recoverable Mn).Forecast cashflows generate a simple payback period of 14 months from start of operations.Expanded mining production and process commissioning is currently scheduled to commence within 11 months, subject to final investment decision and securing project financing.The base case involves an annual production and sale of 1.1M tpa of lump manganese ore grading 32% Mn.The concentrate production strategy complements and enhances the Company’s plan to develop the proposed high purity manganese sulfate (HPMSM) plant in Louisiana to supply offtake partners General Motors LLC(GM) and Stellantis NV (Stellantis) with high purity manganese for EV battery manufacture1.
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