Cradle Resources (Cradle) recently announced some of the preliminary results from the Front-End Engineering Design (FEED) work that has been carried out since the completion of the Definitive Feasibility Study. This work has been undertaken under the management of the Panda Hill Tanzania (PHT) team, the joint venture vehicle between Cradle and Tremont Investments Limited (Tremont).
The FEED program was focused on further de-risking of the project, while also looking for opportunities to reduce the upfront capital and pullback the execution schedule. Some preliminary results have recently been received, with the work expected to be completed and reported on in Q1/Q2 2017.
The highlights from the work carried out by the various consultants are:
- The project capital costs have been reduced by circa US$10 million compared to the Definitive Feasibility Study (DFS) – US$186M (vs. US$197M in the DFS).
- The estimated operating costs (including mine, plant and overheads) are similar to the DFS values – US$61.15/ t mill feed (vs. US$61.63/ t mill feed in the DFS)
- The schedule for the execution of the project has been reduced by 3 months (to 18 months)
- The mine and infrastructure design have been significantly de-risked
The following activities are also underway that will allow a smooth transition into the detailed design and execution phase of the project;
- EPCM bids were received from three contractors
- The preferred contractors have been selected for the project construction services
- Mining tenders were received from selected contractors
- Water extraction permits for the yielding boreholes were submitted to the Lake Rukwa Water Board
- The extraction permit application for the water from the Songwe River was submitted
- Agreement with Tanesco (power utility) completed with approval for offtake from their existing power line for the early works functions (construction camp etc.). This line will be upgraded later during operations.
Update Process Plant Layout after FEED Optimisation Work