Intex Resources is pleased to announce the public release of details of the Mindoro Nickel definitive feasibility study on its web site. Following the formal release of certain trading restrictions against parties who showed interest in the company’s feasibility study, the new management has cleared the way for providing the details of what we find are the remarkable results of the Mindoro Definitive Feasibility Study to a much broader audience, for better transparency and in accordance with regulations of other securities as e.g. the NI43-101 and Sedar submission requirements in Canada. While the original target was a maximized economic value for the project, the company’s technical management together with its engineering advisors also set out to create a project that not only would have a substantial value as a commercial enterprise, but equally important, would incorporate the most efficient technologies available for the processing of nickel from laterite ore, and with maximized environmental considerations. The result was a project which – benign by design –potentially could set a new standard for the nickel industry and make nickel mining vastly more acceptable than traditional projects. Our flow sheet is using a combined hydrometallurgical process for both its limonite and saprolite ores, thereby avoiding high-energy smelting of e.g. the saprolite ore component. The project will self-generate 110 MW of entirely CO2-free power from steam produced from excess heat in the acid plant and the subsequent neutralisation of residual acid is conducted using additional saprolite ore rather than limestone, further minimizing CO2-emissions while adding more nickel to the process. Heat and water is excessively recycled and the ore is slurried using sea water, limiting the fresh water needs. In the mine, both limonite and saprolite ores are mined and consumed by the process plant in the ratio they occur, minimizing the need for stockpiling vast amounts of ore. This is possible because of the uniform nature of the mineral deposit, and has the important implication that mining can be conducted sequentially and in a small, restricted footprint. Mine blocks are defined within isolated natural drainage fields to minimize the risk of spills to local runoff and the mine plan includes extensive mitigation installations to avoid the escape of materials from active mine areas. Following the mining operation each area will be immediately rehabilitated and replanted before it is returned to the original land users. The Board’s main objective of the DFS was to maximize the value of the project, and as the economics of the study also showed, the project is financially robust with an NPV (10%) of USD 2.5 bn and IRR of 24% at a long term nickel price of USD8.25. Operating costs were estimated at USD 2.11/lb before credits for by products and USD0.56/Lb after credits. At today’s nickel price this gives the project a margin of USD 10 /lb Nickel or an impressive EBIDTA of USD 1.2 Bn /y. The Proven and Probable Reserves today define 2.6 bn pounds of nickel while the total resources contain approximately the double amount, with further upside. The Capex of USD 2.5 bn for a hydrometallurgical plant of 120 million Lb Nickel (53,000 tpa) is in line with comparable projects, however, it nevertheless represents such an amount that the management realises this could be a challenge for the realisation of this project in the Philippines. Intex’s management therefore has started initiatives to study alternative solutions for the start up of this project under a considerable lower financial risk profile. These initiatives include a staged development plan where the first stage could be built around a turnkey acid plant, to minimize technical risks, and using smaller hydrometallurgical production units, which is expected to substantially reduce CAPEX. With a smaller start up, valuable operational experience can be gathered and cash flow be established in preparation for optional expansion stages to ultimately a full scale project in subsequent stages. The management remains confident that Mindoro Nickel represents a unique opportunity to the communities of Mindoro Island, and to the Philippines as well as to our shareholders, and the new management will continue to aggressively seek its early realization, while keeping our shareholders and stakeholders informed about progress. 0 - MN Introduction 2011 1 - Executive Summary - February 2010 1X - MN Present Brief Introduction 2010 2 - Introduction - February 2010 2X - MN Present Geology & Mining 2010 3 - Geology & Resources - February 2010 3X - MN Present Metallurgical Development Rev3 4 - Mining & Reserves - February 2010 4X - MN Present Comrel & Social Nov 2009 5 - Social & Environmental - February 2010 6 - Market & Marketing - February 2010 A1.0 - 43-101 Technical Report - Geology - 2010-02-11 A2.0 - 43-101 Technical Report - Appendices - 2010-02-11 sign
Intex Resources Philippines Inc. 2014