Metallica Minerals Limited announced the completion of its PFS of its 100%-owned Cape Flattery Silica Sand Project. The PFS includes reporting of a Maiden Ore Reserve of 46Mt @ 99.18% Si0. The PFS has built upon the 2021 Scoping Study and incorporated significant third-party information on key project components including processing plant design, mine operations and construction of the Project's 100%-owned jetty.

The PFS also reports C1 operating costs of $33.77/t, which are comparable with the Scoping Study results. Cape Flattery Silica Sand Project's (CFS) Pre-Feasibility Study (PFS) confirms the Project can be a long-life silica sand project producing high-quality silica sand for the booming Asia-Pacific glass manufacturing markets supplying the solar panel industry. The PFS returns pre-tax Net Present Value (NPV8) of AUD 290 million (M), Internal Rate of Return (IRR) of 34.9% and life of Project cash revenue of AUD 2,127 million.

This compares with the Updated Scoping Study (10 November 2021) which had an NPV8 of AUD 253 million. The Capital Cost of CFS is estimated to be $79 million (including a 15% contingency of $10 million) with a payback period from commencement of production of 3.9 years. All production is based on the Maiden Ore Reserve.

The Maiden Ore Reserve of 46 million tonnes (Mt) @ 99.18% SiO (within a Mineral Resource of 53.5Mt @ 99.19% SiO, is exploited over a 25 year Project life producing saleable product of 1.35Mt per annum. Sensitivity and scenario analysis demonstrate the Project is financially robust and can maintain a positive Net Present Value (NPV) through stress-testing of the various scenarios. Both the sand extraction area and the industry standard processing facility will have a small footprint and low environmental impact.

A purpose-built jetty is planned to be constructed (subject to Development Approval (DA)) to allow barge loading and transhipping operations. This infrastructure, importantly, is located within the Port Limit of Cape Flattery. Development of CFS will deliver employment, apprenticeship and training opportunities to the Hope Vale and Cooktown communities, particularly the local indigenous communities.

CFS will contribute to delivery of the Queensland Government's commitment to the development of new economy minerals in Far North Queensland. The results from the PFS demonstrate a strong financial case and the Company's Board has approved commencement of a Definitive Feasibility Study (DFS), which is expected to commence in second quarter 2022 following a Board review.