ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 42 ▪ The commencement of open-cut mining operations in July 2023 with the May 2023 Bankable Feasibility Study Update delivering the following strong Pre-Tax Economics* for the Mt Carbine Expansion Program: – NPV8 of $307.1 million (47% increase compared to the November 2022 BFS update of $209 million); – IRR of 477%; and – Life of Mine EBITDA of $450 million. 1 Concentrate sales price basis US$340/mtu (mtu = metric tonne unit, 10kg) in 2023, with a long-term forecast average of US $369/mtu (2024 – 2040) calculated using the average of the Roskill Base Case and High Case price level scenarios (see Chapter 16 of 2021 BFS). ▪ Mt Carbine Infill Drilling revealing additional high-grade ore in the Stage II Andrew White Open Pit waste cutback area, which was previously undrilled and considered waste. ▪ New JORC 2012 compliant Mineral Resource Estimate (“MRE”) updating Saloro’s historical resource statement added 4.74M mtu (mtu = 10kg WO3) to EQR’s resource inventory. With 78% of the Saloro MRE being in the Indicated and Measured Category, it provides great confidence to the project's longevity. ▪ Completion of a 511m percussion drill program at the Telephone Line Prospect at Panama Hat (EL 8024) conducted by Sozo Resources Pty Ltd (“Sozo”) in line with the Farm-In and Joint Venture Agreement entered into between the Company and Sozo in November 2021. ▪ The Company’s wholly owned subsidiary, Mt Carbine Quarrying Operations Pty Ltd, continuing to dedicate resources to developing its ‘green aggregates’ business to enable the repurposed Mt Carbine aggregates to be classified as a recycled product. This will open additional opportunities in both local and regional markets, potentially increasing future sales as regional industries demand more recycled products. The Company continues to submit tenders for substantial civil projects in the Quarry’s operational area, all of which are dependent upon either Federal or State funding. ▪ The Company continues to hold: – Two (2) gold prospects in NSW and has entered into Farm-In and Joint Venture Agreement (the “Agreement”) executed with Sozo Resources Pty Ltd (“Sozo”) whereby Sozo can earn up to an 80% interest in EQR’s Panama Hat and Crow Mountain Projects (EL’s 6648 and 8024) by completing expenditure of A$1.6M over 4 years. As announced on 8 May 2023, Sozo Resources has successfully completed the Stage 1 Farm-In Conditions and has elected to proceed to Stage 2 Farm-In, providing Sozo the exclusive right to earn a 49% legal and beneficial interest in the Joint Venture gold properties subject to conditions. – Three (3) tungsten-focused Exploration Permits, EPM 27394, EPM 14871 and EPM 14872, located at Mt Carbine, North Queensland. EPM 14872 contains both the Iron Duke and Petersen’s Lode prospects, whilst EPM 14871 features the Mt Holmes tin-tungsten prospect. EPM 14872 holds significant exploration upside given that the tungsten grades indicated in the sampling of the Iron Duke and Petersen’s Lode are extensively higher than the estimated global average grade in the present open-pit resource within the Mt Carbine Mining Leases. These unencumbered, greenfield sites also offer the added advantage of having minimal environmental legacy issues. Based on the above, Directors have assessed there to be no indication of impairment in the current financial year. Notes to the Consolidated Financial Statements continued 108 EQ Resources Limited Annual Report 2024
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