(Ecofin Agency) - AIM-listed Sierra Rutile completed prefeasibilty study (PFS) for its Sembehun dry mine in Sierra Leone, intended to extend the life and scope of operations at the mine. The study showed improved results in framing study conducted in 2015.

The PFS was based on dry mining of a resource containing 3.6 million tons of rutile at a grade of 0.98% with a throughput of 1,000t/h from two 500t/h concentrator plants. It revealed that, at 1,000t/h, the mine was expected to contribute an average of 71,000 tons of rutile per year, for 21 years.

Results reveal that, to operate the first plant, a capital of $72 million was needed. For the two plants, the company needs $99 million; a sum which is 22% lower than $126 million in the framing study.

Post-tax internal rate of return mentioned in the PFS is 66% against 33% projected by framing study and post-tax net present value is $224 million instead of $152 million previously estimated.

Moreover, the PFS also proved that the mine could be developed in 15 months, production starting in the 12th month.

Due to the results, the company said it intends to concentrate on a more thorough examination, focusing on operational flexibility, reducing capital costs and optimizing operational costs.

In Sierra Leone, Sierra Rutile Ltd owns three exploration licences including the Jagbwema (109.2 km2), Gbangbaia (104.9 km2) and Semabu (189.2 km2) deposits.

Louis-Nino Kansoun