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Manganese X Energy Announces Filing of Independent Preliminary Economic Assessment for its Battery Hill Project
Montréal, Québec--(Newsfile Corp. - June 27, 2022) - Manganese X Energy Corp. (TSXV...
About this update from Manganese X Energy Corp.
[{"type":"text","content":"Manganese X Energy Announces Filing of Independent Preliminary Economic Assessment for its Battery Hill ProjectMontréal, Québec--(Newsfile Corp. - June 27, 2022) - Manganese X Energy Corp. (TSXV: MN) (FSE:9SC) (OTCQB : MNXXF) (\"Manganese X\", \"MN\", or the \"Company\") is pleased to announce that, further to its May 12, 2022 news release, it has filed a technical report on Sedar of a Preliminary Economic Assessment (the \"PEA\") for its wholly owned Battery Hill manganese project, located near Woodstock, N.B.. There is no material difference in the PEA from the information disclosed in the May 12, 2022 news release.The PEA was prepared by Wood Canada Ltd., an independent engineering service group with extensive experience in mining and mineral processing. The PEA technical report was prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (\"NI 43-101\"), has an effective date of May 12, 2022, and has a report date of June 24, 2022.PEA Highlights (All dollar values are in US dollars unless otherwise stated): Robust EconomicsAfter-tax net present value using a 10% discount rate (\"NPV10\"): $486 million 25% internal rate of return (\"IRR\")Capital costs (\"CAPEX\") of $350 million with a payback of 2.8 yearsAverage annual gross revenue of $177 million per year over the 47 years Project lifeAverage annual gross revenue of $220 million over the first seven yearsLife of mine (\"LOM\") operating cost (\"OPEX\") of $122/t material processedHPMSM Market PriceBase case market price of $2,900/t for battery-grade high-purity manganese sulphate (\"HPMSM\") is well below the long-term forecast price of $4,200/t HPMSM estimated by CPM GroupPrice SensitivityBase case undiscounted after-tax cashflow: $3.4 billionSensitivity analysis shows after-tax NPV10 reaches $914 million at $4,200/t HPMSMLong Mine Life40-year mine production life and seven years of stockpile reclaim feed Total LOM production of 3.2 million tonnes of HPMSMAverage annual HPMSM production of 68,000 tonnes over the LOMAverage annual HPMSM production of 84,000 tonnes in the first seven years of productionLow Environmental ImpactFlowsheet produces a filtered residue leach product with initial acid-base accounting and non-acid generating test results showing no acid drainage riskProject Objectives Proje...