July 6, 2010 - Mining group Tertiary Minerals says its 100%-owned Storuman fluorspar project in Sweden could give a three-year payback on $46m of initial capital expenditure.
Tertiary has announced completion of an independent scoping study by Scott Wilson.
A viable fluorspar project is predicted with a base case generating $616m in revenue over an 18-year mine life.
Net pre-tax operating cash flow of $17m a year is predicted in the first five years of production.
Tertiary now plans further drilling and more definitive studies.
Executive chairman Patrick Cheetham said, 'This is an important value-adding milestone for the Storuman project and for the company, and it allows the board to make decisions regarding future advancement of the project.
"The study suggests a long-life project is possible with an attractive payback and particularly strong cash-flow over the important first five years."
Fluorspar is the commercial name for the industrial mineral fluorite. Supply shortages are predicted by the European Commission.
Tertiary has announced completion of an independent scoping study by Scott Wilson.
A viable fluorspar project is predicted with a base case generating $616m in revenue over an 18-year mine life.
Net pre-tax operating cash flow of $17m a year is predicted in the first five years of production.
Tertiary now plans further drilling and more definitive studies.
Executive chairman Patrick Cheetham said, 'This is an important value-adding milestone for the Storuman project and for the company, and it allows the board to make decisions regarding future advancement of the project.
"The study suggests a long-life project is possible with an attractive payback and particularly strong cash-flow over the important first five years."
Fluorspar is the commercial name for the industrial mineral fluorite. Supply shortages are predicted by the European Commission.
