- Rafaella Resources (RFR) has released its pre-feasibility study (PFS) for its Santa Comba Tungsten and Tin Project in Spain
- The study focused on the company’s plan to develop an open-pit operation at Santa Comba
- The PFS assigns the project a proven and probable ore reserve of 4.59 million tonnes at a 0.148 per cent tungsten (WO3) grade
- It also sets out five-year mine life at 1.3 million tonnes per annum (mtpa), giving it a pre-tax net present value (NPV) of US$28.6 million (around A$40.3 million)
- An estimated US$7.1 million (roughly A$9.62 million) in capital costs would need to be spent on the project, but the PFS estimates payback could be achieved within five months
- Next steps for RFR following the release of the study include ramping up development at the site, with some work already underway
- Shares in RFR have opened trading up 2.5 per cent at 8.2 cents each
Rafaella Resources (RFR) has released its pre-feasibility study (PFS) for its Santa Comba Tungsten and Tin Project.
The PFS was conducted in-house, with help from leading consultants, and focuses on RFR’s plan to develop an open-pit operation at the Spanish project.
The study assigns Santa Comba a five-year open pit mine life at 1.3 million tonnes per annum (mtpa).
It also assigns the project a proven and probable ore reserve of 4.59 million tonnes at a grade of 0.148 per cent tungsten (WO3).
All up, Santa Comba has been given a pre-tax net present value (NPV) of US$28.6 million (around A$40.3 million) and a pre-tax internal rate of return (IRR) of 156 per cent.
Rafaella estimates it would be able to achieve payback within five months after investing a total development capital expenditure of US$7.1 million (roughly A$9.62 million).
“The results of this detailed PFS clearly demonstrate that the Santa Comba Project is an exciting development with exceptional economics,” Managing Director Steven Turner said.
The project also benefits from having an existing approval in place to construct a process plant and recommence underground mining operations.
From there, it could source initial open-pit material from a local quarry operator, essentially fast-tracking its planned development.
“The project has been designed from a modest resource base as the Company is focussed on delivering early cash flows from which further expansion can be funded,” Steven explained.
“The open pit as a stand-alone project shows rapid capital payback and strong operating cash flows,” he concluded.
Rafaella is hoping to begin development at Santa Comba as soon as possible, with the project implementation plan assuming first sales will be ready late 2021.
Already, the company has begun underground recommissioning work with additional site preparation work for the plant installation also underway at the project in Spain.
Shares in Rafaella Resources are trading up 2.5 per cent at 8.2 cents each at 11:36 am AEDT.