- Increased annual production will place Voskhod in top three global suppliers of high-grade chrome ore, a critical ingredient in the growing stainless steel market.
- An increase in average annual saleable chrome ore to 900,000 tonnes.
- Voskhod chrome ore is of very high grade; typically up to 48% Cr2O3 with up to 57% Cr2O3grade concentrate anticipated to be readily produced.
- Voskhod maintains a long mine life of 14 years, with potential to extend life to over 20 years.
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Increase in CIM and NI 43-101 compliant Indicated and Inferred mineral resources.
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Indicated resource of 19.51 million tonnes at 48.47% Cr2O3, being a 9.5% increase of contained chrome content over the PAS.
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Inferred resources of 1.57 million tonnes at 41.05% Cr2O3, being a six-fold increase of contained chrome content over the PAS.
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Capital expenditure estimated at US$131 million, including 10% contingency, VAT (recoverable) and import duties
- Life of mine operation cash flow estimated at US$1.2 billion with average annual cash flow of US$85 million.
JUNE 2006 DEFINITIVE FEASIBILITY STUDY HIGHLIGHTS
| (100% Equity) | Pre-Tax | Post-Tax |
|---|---|---|
| NPV 10% | US$472 million | US$320 million |
| IRR | 50% | 41% |
- Extension to the Voskhod contract license area awarded, which includes the Karaagash deposit which has Russian C2 and P1 classified resources of some 7.8 million tonnes. These estimates have not yet been audited and do not comply with NI 43-101 standards.
- Off-take demands for Voskhod ore from both ferrochrome plants and metal traders in Russia, China and Western Europe have exceeded 1.7 million tonnes.
- Further development of on-site infrastructure such as roads, rail and power-supply allows for the security of independent, long-term production.
- Commencing Q2 2008, life of mine operating costs of US$20.80 per tonne of run of mine (ROM) ore.
- SRK used a conservative ore price of US$145 per tonne in the Feasibility Study financial model, whereas market expert, Heinz Pariser forecast a price between US$154-US$224 (average US$183) per tonne through to 2015.
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