Name of the Project
Mount Peake vanadium/titanium/iron project.

Location
Northern Territory, Australia.

Client
TNG.

Project Description
A definitive feasibility study (DFS) has outlined a world-class project with an initial 17-year mine life.

The project has a maiden probable ore reserve of 41.1-million tonnes (50% of mine life) at 0.42% vanadium pentoxide (V₂O₅), 7.99% titanium dioxide (TiO₂) and 28% iron oxide at a cutoff grade of 15% Fe.

The study has converted 65% of the measured resource, with a 50% increase in V₂O₅ grade.

The DFS is based on the production of magnetite concentrate on site in two stages at Mount Peake.

Stage 1 involves the construction of a three-million-tonne-a-year operation.

Stage 2 is planned for years 4 to 5, where mine production is projected to increase from three-million tonnes a year to six-million tonnes a year, and the capacity of the concentrator and refinery to double.

The DFS assumes that concentrate will be trucked to a rail siding and then railed north to a TIVAN refinery facility, located about 10 km from Darwin port. The facility will produce high-purity V₂O₅, TiO₂ concentrate and iron oxide from the magnetite concentrate.

Associated downstream plants will produce high-grade titanium pigment and pig iron.

The TIVAN refinery will have a design feed capacity of 900 000 t/y of magnetite concentrate and is proposed to expand to a maximum production capacity of 1.8-million tonnes in Year 5.

The refinery comprises feed preparation, leaching, solvent extraction and acid regeneration.

The DFS estimates average production of 17 560 t/y of V₂O₅, 236 000 t/y of TiO₂ (pigment) and 637 000 t/y of pig iron.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of A$4.9-billion and an internal rate of return of 41%.

Value
The preproduction capital cost is estimated at A$970-million, which includes all infrastructure, access/haul roads, mining, rail works, water supply, the Darwin refinery and port handling costs, as well as a concentrator, camp and tailings dam.

Duration
Not stated.

Latest Developments
TNG has signed a binding term sheet with Switzerland-based speciality chemicals distributor DKSH, to acquire all the titanium dioxide pigment produced at the Mt Peake vanadium/titanium/iron project.

Under the agreement, DKSH will provide a full distribution service for the Mt Peake titanium dioxide products, including technical support, global logistics, marketing and sales, using its global network.

The agreement with DKSH represents another major step forward for the project, and paves the way for financing and development of the Mt Peake project to proceed.

In addition to the DKSH offtake agreement, TNG also has a binding life-of-mine (LoM) offtake agreement with WOOJIN Metals for a minimum of 60% of the vanadium output from Mt Peake, and a binding term sheet with Gunvor from Singapore, for LoM offtake for iron products.

Key Contracts and Suppliers
SMS Group (design, engineering and tendering for construction of the TIVAN downstream refinery).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
TNG, tel +61 8 9327 0900, fax +61 8 9327 0901 or email corporate@tngltd.com.au.
SMS Group, tel +49 211 881-0, fax +49 211 881 4902 or email communications@sms-group.com.