|Australian Mines is committed to becoming a significant producer of essential technology metals by bringing our cobalt-scandium-nickel ore bodies into production in the shortest possible timeframe.
Our aim is to deliver consistent and considerable value to our shareholders through the sale of these high-value commodities to end-customers in a range of high technology manufacturing sectors, including the battery and transport industries.
Our flagship Sconi Project is one of the very few large ore bodies of its type within Australia and is also considered the most advanced towards production.
The economic modelling completed for the Sconi Project demonstrated that the project supports a two million tonne per annum process plant that would deliver long-term benefits to both the regional Queensland community and Australian Mines shareholders.Life of Mine average annual production is projected to be 7,000 tonnes of cobalt sulphate and 46,800 tonnes of nickel sulphate. Over the 30-year project life, Sconi is expected to generate total free cashflow of A$5.0 billion, with an NPV8 (pre-tax) of $1.47 billion and an IRR (pre-tax) of 20%.Australian Mines also has 100% ownership of the Flemington Cobalt-Scabndium-Nickel Project, located 370 kilometres west of Sydney in New South Wales, with the Project representing a second potential cobalt production source in the medium term.
There is significant potential to materially expand the current Mineral Resource with presently only one per cent of the prospective area tested for cobalt and nickel. The Project also benefits from a secured, permanent water allocation to support a future mining operation.
Recent drilling at Flemington has significantly increased the strike length of mineralisation to the west, with further drilling planned in 2019 before a revised Mineral Resource estimate in early 2020.