Mayur applies for mining lease

MAYUR Resources Ltd says it is a step closer to developing PNG’s first iron and industrial minerals project following the lodgment of a mining lease (ML) application for its Orokolo Bay project in Gulf.
According to the company, the application concerns the full-scale development of the project which has a planned saleable production rate of 0.5 million tonnes per annum (Mtpa) of vanadium titano-magnetite (VTM) and dense medium separation magnetite
It also estimates to produce one Mtpa of high grade silica construction material and 8,000 to 10,000tpa of a zircon rich heavy mineral concentrate.
The Mineral Resources Authority (MRA) will now review the application which is supported by the definitive feasibility study (DFS) completed last September, as well as land ownership studies.
Mayur Resources Ltd managing director Paul Mulder said it was the final step for the project to be fully consented and shovel ready.
“As Mayur’s second project to be advanced to final legislative approval in PNG, Orokolo is a simple, onshore, near-surface mining and processing operation with no requirement for grinding or chemical processing and a capital cost of only US$22 million (K77.19mil),” he said.
“We, therefore, anticipate being able to work quickly with the MRA on this assessment.
“We’ve secured funding for the project which will not require further dilution and is exposed to an attractive forward-looking earning profile from next year.”
The financial analysis in the DFS used a pricing assumption for the VTM product based on a conservative long-term iron ore price of US$66.30/t (K231).
“This compares to a current iron ore price above US$150/t (K175), a major potential upside to the economics of the project.
“In addition to the supportive iron pricing, and subsequent to the completion of the DFS, considerable work has also been undertaken and continues to be progressed to assess the suitability of the Orokolo Bay material to supply Singapore’s construction sector that imports huge amounts of this material.
“This potential opportunity is in addition to the supply of material to the Sydney market.”
Mulder said he was excited by the opportunity to establish a commercial-scale, mechanised sago harvesting operation post-mining (with sago being the main local food staple).
“Our plan is to provide the community with sustainable employment and revenue opportunities that will continue well beyond the life of the mine, where sago production can serve both local demand and also be transported and sold in the larger Port Moresby market,” he said.
“The MRA’s consideration of our application will occur in parallel with Orokolo’s pilot plant bulk sampling activities, for which the key plant and equipment is awaiting shipment into PNG.
“Construction of the pilot plant and the full-scale operation may overlap depending upon the timing of the mining lease approval process and the easing of the Covid-19 travel and transport restrictions into PNG.”