Westech carried out due diligence of the asset, a closed asset that was the largest mine in South Korea. Over 36 months, Westech reopened the underground mine – completing 5000 metres of access development and drilled over 20,000 metres to verify historical data and carry out test work to recover Tungsten in WO3.
Fijian staff were brought to train the Koreans in modern mining practices including ground support, underground development and diamond drilling. The operation was to be run with little or no expatriate staff. All test work was completed by Westech staff through laboratories in Canada, Australia and China.
The design was unique in being whole of ore floatation and with the ability to easily upgrade from 1.2 million tonnes to 2.4 million tonnes. The total capital of the process plant was quoted at $85 million. The mine plan included fully mechanised mining utilising past fill.
Westech produced a feasibility study on the operations in conjunction with Tetra Tech UK, complying with NI43-101 and indicating an NPV of $562 million with a 65% IRR. The feasibility was verified by various due diligence providers including SRK, while the valuation was confirmed by various parties including PWC Korea.
Westech negotiated with the government and gained environmental and mining approval within 6 months.
© 2015 Westech International