RE:RE:RE:RE:On the bright side Magnesium Project (Preliminary Feasibility Study)
Considers annual production of 100,000 tonnes of MgCl2 brine and 104,000 tonnes of 99+% Hydromagnesite (BMC). Construction assumed after phase 1 of potash)
- NPV (10%) $512 Million (after tax)
- IRR 26.1% (after tax)
- CAPEX (additional to Phase 1) $171 million
- OPEX for MgCl2 Brine $7.01 per tonne
- OPEX for Hydromagnesite $302.01 per tonne
- Probable Reserves for MgCl2 694.6 million tonnes of carnallitite @ 22.1% MgCl2, equivalent to 153.3 million tonnes “mineable” and 7.9 million tonnes of product
| Probable Reserves MgCl2 | Mineralized Material | Average MgCl2 Grade % | Minable MgCl2 Tonnage | Product Tonnage |
| Patience Lake + Belle Plaine | 694.6 | 22.1 | 153.3 | 7.9 |
| Total Probable | 7.9 |
The discounted cash flow model to determine Net Present Value (NPV) and Internal Rate of Return (IRR) for the Magnesium Project was determined based on prices of: $40 per tonne for MgCl2 brine, $600 per tonne for 50% of the Hydromagnesite as replacement for Precipitated Calcium Carbonate, and the remaining Hydromagnesite at $1800 per tonne as replacement for TiO2 in paint pigments.
https://karnalyte.com/2016-july-15-43-101-technical-report/