Temas Resources Corp. (TMAS) and its partner Erin Ventures Inc. (TSXV: EV) gained in Canada trading on Tuesday after reporting "positive" results of an independent technical report and preliminary economic assessment for the Piskanja boron project in Serbia.
The companies said the base case discount rate of 10% returns a net present value of US$553.9 million pre-tax and US$524.9 million post-tax. The post-tax internal rate of return is estimated to be 78.7%.
The companies expect the initial capex to be US$79.9 million and the capex payback from commercial production in 12 months.
Temas was trading more than 12% higher while Erin was up 30% at last look.
"The robust results in the Piskanja PEA confirm what we have always believed - that Piskanja has the potential to be amongst the most impressive boron properties globally," said Tim Daniels, President of Erin Ventures. "Piskanja's projected low operating cost enhances the likelihood of profitability even in the weakest of boron market scenarios."