Donner update Chart below provides updated Donner-Snow Lake comparison using the Primero Engineering values for Donner released yesterday, the lower current spot price of spodumene concentrate (US$ 2110/t @6%) and 70% recovery rate provided by Primero. Note that during the first 5+ years of open pit operation at Donner, mining costs will be lower than indicated below and fleet costs should be lower due to lower production rates compared to Snow Lake. Margins remain very healthy even at the lower Li price.
| Donner (Tanco mill) | Donner (True North mill) | Snow Lake |
Tonnes (mm) | 6.8 (2.1 open pit) | 6.8 (2.1 open pit) | 8.2 (0.6 open pit) |
Grade % Li2O | 1.39 | 1.39 | 1.1 |
Li2O (mm kg) | 95,000 | 95,000 | 90,000 |
| | | |
| Initial Capital Costs (US$ mm) |
Pre-production1 | 19 | 19 | 19 |
Mining fleet1 | 32 | 32 | 32 |
Ore sorting1 | 7 | 7 | 7 |
Mill | nil2 | 572 | 42 |
Road1 | 1 | 1 | 1 |
Power line | nil | nil | 18 |
Bridges | nil | nil | 15 |
| | | |
Closure Costs | 10 | 10 | 10 |
| | | |
Total capital costs (mm $US) | $69 | $126 | $146 |
| | | |
Operating Costs | | | |
US$/t mined1 | 33 | 33 | 33 |
Ore sorting ($/t mined)1 | 2 | 2 | 2 |
Mill processing ($/t milled) | 263 | 31.53 | 16 |
Transport ($/t milled) | 304 | 304 | 15 |
Admin ($/t milled)1 | 135 | 135 | 2 |
Total (US$/t milled) | 104 | 110 | 68 |
Revenue | | | |
Li2O @6 % (US $/t) | $2130 | $2130 | $2130 |
Gross $/t milled @70% recov | $345 | $345 | $273 |
Net $/t milled @70% recov | $241 | $235 | $205 |
Milling rate t/d | 5006 | 12307 | 2500 |
Revenue ($US/yr) | $63 mm | $155 mm | $249 mm |
Cash flow ($US/yr) | $448 mm | $106 mm | $187 mm |
| | | |
Market capitalization (US$) | $13 mm | $13 mm | $20 mm |
| | | |
| | | | |
1) Donner costs assumed the same as Snow Lake
2) Includes total lease payments to 1911 Gold over 10 yr period ($7mm)
3) Milling costs provided by Primero plus US$5.50/t toll milling fee paid to 1911 Gold
4) Transport costs assumed same as Snow Lake plus $15/t for ore transport to True North (82km) or Tanco mills.
5) Admin costs provided by Primero
6) capacity of Tanco mill
7) Milling rate provided by Primero
8) Grid’s share of 50/50 profit split with Tanco = US $22 mm/yr