KEY POINTS
- Mt Lindsay has an estimated A$1.01bn after-tax NPV.
- Tungsten could provide 75% of life-of-mine revenue.
- The project requires about A$244m in pre-production capital.
Australian mining company Critica has completed a scoping study for its Mt Lindsay tin and tungsten project in Tasmania, outlining a potential underground operation with an estimated after-tax net present value of about A$1.01 billion.
The study also forecasts a 56% internal rate of return and a payback period of about 1.9 years under its base-case assumptions.
The proposed Mt Lindsay development would involve an underground mining and processing operation capable of handling about one million metric tons of material a year.
The project is expected to require about A$244 million in pre-production capital, while projected life-of-mine sales revenue is estimated at A$5.2 billion over a 13.5-year operating period.
The scoping study was prepared by engineering and project consultancy DRA Global and outlines an underground development pathway focused on tin and tungsten production.
Tungsten drives project value
Tungsten is expected to account for about 75% of the project’s modeled life-of-mine revenue under the base case.
The metal is widely used in electronics, advanced manufacturing, defense and aerospace, making it an important industrial commodity.
Critica’s exposure to tungsten comes as mining companies and governments in Western countries seek more secure sources of critical minerals and reduce supply-chain vulnerabilities.
The current study does not include potential revenue from copper and other byproducts. Critica said these could provide additional upside if future metallurgical and commercial assessments support their inclusion.
Underground mine replaces open-pit concept
The new development plan represents a significant change from the historical open-pit approach previously considered for Mt Lindsay.
The proposed operation would use dual-decline access and longhole open stoping with paste fill. A conveyor system would support materials handling, while the processing plant would use a tin, tungsten and magnetite flowsheet.
Critica said the underground design is intended to reduce additional surface disturbance associated with the project.
The company is also assessing the infrastructure required to support the mining and processing operation as it works toward the next stage of project development.
Company prepares for feasibility study
Critica CEO Jacob Deysel said the company would now focus on advancing the technical, metallurgical, approvals, funding and commercial work needed to move Mt Lindsay toward a definitive feasibility study.
The scoping study provides an early economic assessment of the proposed development, with further work required before the project can proceed to construction and production.
Critica also said a separate scoping study for its Jupiter rare earths project is expected to be released shortly.
The company’s latest assessment positions Mt Lindsay as a potential long-term source of tin and tungsten while providing a basis for further technical and financial evaluation.
