Erin Ventures (CVE:EV) jumped on Wednesday after the company unveiled results from a preliminary economic study at its Piskanja boron project in Serbia.
The NI 43-101 compliant study shows a post-tax net present value of US$428 million at a 10 percent discount rate, and an IRR of 64 percent, with a projected payback period of just 15 months from start up.
Shares rose to as high as 9 cents on Wednesday, up more than 50 percent.
According to the study, average annual production would be 200,000 tonnes of sale grade colemanite and 25,000 tonnes of boric acid, for a period of 21 years. Average annual total revenue is projected at US$97 million, with a net operating margin of 68.7 percent.
Pre-production capital costs are estimated at US$84.6 million, including the cost of a boric acid production plant and contingencies, with all-in operating costs per tonne of product sold seen at US$165.75, after tax.
“We are very pleased with the positive PEA for the Piskanja project, our premier asset,” said president and chief executive officer, Tim Daniels, in a statement released earlier today.
“It shows Piskanja as a robust, long life, low cost mining operation, and represents a significant opportunity for our shareholders.”
The company said there is also good potential for resource expansion at the project, through extending the known resource at Piskanja and by discovering new resources in the Jarandol basin.
Project economics in the study were estimated assuming a constant price of US$400 per tonne for colemanite, and US$800 per tonne for boric acid.
Source Proactiveinvestors
