Voyager Metals Files Technical Report For Updated Preliminary Economic Assessment At The Mont Sorcier Magnetite Iron And Vanadium Project In Quebec
Annual average EBITDA of US$348MM and average annual free cash flow of US$235MM over 21 year life of mine (“LOM”)
Annual production targeted at approx. 5.0 million tonnes of high grade, low impurity, iron concentrate grading ~65% iron with 0.52% V2O5 per tonne of concentrate
Total operating costs of US$66/t of concentrate over LOM (freight to China included)
Initial Capex estimated at US$574 million includes US$118 million contingency
Payback period under 2 years
21-year LOM uses under one third of current total mineral resources
Open pit mining operation with a LOM strip ratio less than 0.9:1
Current mine plan uses only Indicated Resources in the North Zone
Additional upside from the potential to expand development from the current North Zone Inferred Resources (471Mt) and South Zone Indicated (119Mt) and Inferred (76Mt) Resources
Voyager Metals Inc. (“Voyager” or the “Company”) (TSXV:VONE), announces the filing of the Technical Report entitled “NI 43-101 Technical Report – Preliminary Economic Assessment (PEA) of the Mont Sorcier Project, Province of Quebec, Canada. As a result of a review by staff of the Ontario Securities Commission, the Company wishes to clarify certain aspects of its disclosure from the July 25, 2022 news release regarding at the Mont Sorcier Iron and Vanadium Project. The PEA was completed by DRA Global an independent engineering and consulting group, with input from independent consulting group InnovExplo Inc (“InnovExplo”) for the Mineral Resource Estimate (“MRE”) and independent consulting group Soutex Inc (“Soutex”) for the Mineral Processing & Metallurgical Testing and Recovery Methods. The report has an effective date of September 8, 2022. The PEA was completed using only the Indicated Resources of the most recent MRE that was filed on Sedar on July 22, 2022.
Management uses EBITDA, Cash Costs, AISC, free cash flow and other such measures as measures of operating performance to assist in assessing the Company’s ability to generate future liquidity through operating cash flow to fund future working capital needs and to fund future capital expenditures, as well as to assist in comparing financial performance from period to period on a consistent basis. The Company believes that these measures are used by and are useful to investors and other users of the Company’s financial statements in evaluating the Company’s operating and cash performance because they allow for analysis of its financial results without regard to special, non-cash and other non-core items, which can vary substantially from company to company and over different periods.
The Company calculates EBITDA as NSR subtracting operational expenditure (OPEX) and subtracting Royalties.
The Company defines free cash flow as a measure of the Corporation’s ability to generate and manage liquidity. It is calculated starting with the net cash flows from operating activities (as per IFRS) and then subtracting capital expenditures and lease payments.
About Voyager Metals Inc.
Voyager Metals Inc is a mineral exploration company headquartered in Toronto, Canada. The Company is focused on advancing its Mont Sorcier, Vanadium-rich, Magnetite Iron Ore Project, located just outside of Chibougamau, Quebec.
At Mont Sorcier, Voyager is rapidly advancing the project towards Feasibility Study and permitting. The project currently has Indicated Resources of 679M tonnes grading 27.8% magnetite and 0.20% V2O5, with the potential to produce 195M tonnes of magnetite concentrate grading ~65% Fe and 0.52% vanadium pentoxide (V2O5) and a further Inferred Resource estimated at 547M tonnes grading 26.1% magnetite and 0.17% V2O5.
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