Precious metal prospect near Alice Springs almost a mine
/A precious metal prospect 220 kilometres north-east of Alice Springs is one step closer to becoming a mine.
Loading...Mineral exploration and development company Thor Mining has indicated the tungsten project known as Molyhil could be exporting its first truckload in July 2016.
Thor executive chairman Mick Billing said 80 jobs would be created during construction and production.
"We've done a lot of work on Molyhil over the last 10 years," he said.
"Most recently we've completed a feasibility study that says it's got a net present value of nearly $70 million over a six year life."
Mr Billing said the ground beneath the Molyhil prospect contained about 13,000 tonnes on tungsten.
"The prices we're forecasting [indicate the tungsten] will be worth about $40,000 a tonne," he said.
In response to tungsten prices approaching a five year low Mr Billing said the company would prefer tungsten prices were higher.
"Even at the low point that [prices] are at, this project still repays its capital in around two years," he said.
"We also believe the price of tungsten is unlikely to drift any lower."
On the latest development toward getting the mine up and running Mr Billing said the company had "appointed a few outfits in the UK to help".
"They have put us in front of a number of people who are in the business of providing finance for projects like ours," he said.
"Some of those have said yes we are interested and they are running their ruler over it.
"Hopefully in the next month or two they will come back and say we would like to take it to the next step.
"But just because they are interested doesn't mean the cheque is in the mail unfortunately."