en.Wedoany.com Reported - Australian mining company Anax Metals (ASX:ANX) is advancing its Whim Creek copper-zinc project in the Pilbara region of Western Australia, aiming to achieve production within 18 months of a final investment decision (FID). As a brownfield project, it benefits from substantial legacy infrastructure from Straits Resources, including fully permitted mines and processing facilities, providing favorable conditions for Anax to rapidly commence operations.
The Whim Creek project is notable for its polymetallic nature, with copper as the primary element, along with payable quantities of zinc, lead, silver, and gold. The project assets comprise four volcanogenic massive sulphide (VMS) deposits, with two planned for open-pit mining and two for underground mining. Anax Managing Director Geoff Laing stated that the company will produce copper, lead, and zinc concentrates via conventional crushing, grinding, and flotation processes, with significant accompanying gold and silver content.
Leveraging the strategic location of the Whim Creek project, Anax plans to develop it into a broader base metals processing hub for the Pilbara region. Laing noted that while the Pilbara is renowned for iron ore, gold, and lithium, it also hosts numerous VMS-style base metal assets with significant development potential. By utilizing existing infrastructure and optimizing operations, Anax aims to reduce development costs and enhance project economics.
An updated definitive feasibility study (DFS) indicates the Whim Creek project has a pre-tax internal rate of return (IRR) as high as 98%, with free cash flow increasing to US$723 million and a pre-tax net present value (7%, real) of US$501 million. The project boasts a 10-year mine life with reserves of 4.6 million tonnes at excellent grades. Development costs are approximately US$91 million. Anax has raised AU$10 million through a placement to repay debt and fund exploration costs.
In terms of technological innovation, Anax is committed to adopting ore sorting and bioleaching technologies to improve mining efficiency and sustainability. Ore sorting technology can pre-concentrate run-of-mine material, remove waste, and reduce downstream processing costs. Bioleaching technology utilizes naturally occurring bacteria to generate acid for mineral leaching, eliminating the need for chemical additives and reducing environmental impact. Anax is closely collaborating with Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) on bioleaching to promote its application in the mining industry.
With financing secured and project economics enhanced, Anax is accelerating the production timeline for the Whim Creek project. The company also plans to expand its operations by incorporating satellite feed sources, aiming to establish a new base metals hub in the Pilbara region.
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