Korab gains magnesite mining licence at Winchester

2015-10-23

Oct. 23, 2015 - ASX-listed junior Korab Resources has been awarded a 352 ha mining lease over its Winchester magnesium carbonate project, in the Northern Territory, for an initial 25-year period.

A January prefeasibility study estimated that the project would require a capital investment of A$4-million and considered various capacity levels, ranging from a 250 000 t/y to a one-million-tonne-a-year run-of-mine capacity. Operating costs for staged operation would range between A$29/t for the 250 000 t/y operation, to A$21/t for the one-million-tonne-a-year operation, with production ranging from 200 000 t/y of coarse saleable magnesite to 800 000 t/y of coarse saleable magnesite.

The project’s ultimate output would depend on offtake or long-term sales agreements. Korab said on Thursday that discussions with potential funders and magnesium carbonate buyers are at an advanced stage.