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Electric Royalties Announces Filing of Preliminary Economic Assessment for Mont Sorcier Magnetite Iron and Vanadium Project
VANCOUVER, BC / ACCESSWIRE / September 12, 2022 / Electric Royalties Ltd. (TSXV:ELEC) (OTCQB...
About this update from Electric Royalties Ltd.
[{"type":"text","content":"Electric Royalties Announces Filing of Preliminary Economic Assessment for Mont Sorcier Magnetite Iron and Vanadium ProjectVANCOUVER, BC / ACCESSWIRE / September 12, 2022 / Electric Royalties Ltd. (TSXV:ELEC) (OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") is pleased to announce that Voyager Metals Inc. (TSXV:VONE) (\"Voyager\") has filed a Preliminary Economic Assessment (\"PEA\") of the Mont Sorcier iron and vanadium project (\"Mont Sorcier\") located near Chibougamau, Quebec, Canada, on SEDAR.Electric Royalties holds a 1% gross metal royalty on vanadium production at Mont Sorcier, which is projected to have a 21-year operating mine life. If the anticipated project is placed in production as set out in the PEA, the Company estimates that for the life of mine, average annual royalty revenues of US$750,000 to US$1.5 million per year, based on the US$15 to US$30 per tonne vanadium credits forecast in the PEA, may be payable.Brendan Yurik, CEO of Electric Royalties, commented: \"We are pleased with the results of the PEA that forecasts robust economics based on the Indicated Resources of Mont Sorcier's North Zone only. This leaves significant upside potential from the conversion of Inferred Resources in the future. The project is well positioned to leverage the production of premium high-grade magnetite iron concentrate with valuable vanadium credits. Further, the advantageous infrastructure may help to shorten the development timeline. We look forward to additional favourable news from Voyager as it continues work on the feasibility study expected in Q1 2023 to bring Mont Sorcier to a formal development decision.\"Highlights of the PEA (all dollar values are in US dollars unless otherwise stated)1:An after-tax NPV at 8% discount rate of $1.6 billion and IRR of 43%Potential 21-year life of mine (\"LOM\"), with positive after-tax cash flow commencing in year 1 of operationAnnual average EBITDA of $348 million and average annual free cash flow of $235 million over LOMAnnual production targeted at approximately 5.0 million tonnes of high grade, low impurity, iron concentrate grading approximately 65% iron with 0.52% vanadium pentoxide (\"V2O5\") per tonne of concentrateTotal operating costs of $66 per tonne of concentrate over LOM (freight to China included)Initial Capex estimated at $574 million includes $118 million conti...