Maronan Metals Reveals Dual-Path PEA with $377M NPV and 5.4Moz Silver Equivalent Output

Overview of the Maronan Starter Zone PEA

Maronan Metals Limited (ASX, MMA) has announced the results of a Preliminary Economic Assessment (PEA) for the Starter Zone of its 100% owned Maronan Silver-Lead-Copper-Gold deposit in Queensland, Australia. The study evaluates the potential viability of developing an underground mining operation with two distinct processing scenarios, constructing an onsite standalone processing plant or utilizing a regional toll-treatment facility.

The PEA outlines a 10-year mine life with steady-state production of approximately 5.4 million ounces of silver equivalent per annum. Notably, about 70% of the production target is supported by Indicated Mineral Resources, providing a solid foundation for project economics, while the remaining 30% is from Inferred Resources, which carry a higher degree of geological uncertainty.

Financial Highlights and Development Options

The onsite processing plant scenario requires a pre-production capital expenditure of approximately AUD 266 million. This option delivers a base case net present value (NPV8) of around AUD 377 million and an internal rate of return (IRR) of 37%, with a payback period estimated at four years from project start. The all-in sustaining cost (AISC) averages AUD 30.18 per silver equivalent ounce produced.

Alternatively, the toll-treatment option involves trucking ore to a regional processing plant near Cloncurry, with significantly lower upfront capital of AUD 98 million. This pathway offers a higher IRR of 67% and a faster payback period of two years, albeit with a slightly higher AISC of AUD 36.43 per silver equivalent ounce. While no binding toll-treatment agreements are yet in place, Maronan has signed a memorandum of understanding with Austral Resources to explore processing at the Rockland facility.

Resource and Metallurgical Confidence

The Starter Zone represents approximately 22% of the global silver-lead resource and less than 10% of the copper-gold resource at Maronan. The company has successfully converted 100% of the 2024 Inferred Mineral Resources within the Starter Zone to Indicated status through infill drilling, bolstering confidence in the resource base underpinning the PEA.

Metallurgical testwork demonstrates excellent recoveries of silver and lead (above 90%), producing high-grade concentrates with manageable penalty elements. Copper and gold recoveries are also robust, supporting the production of valuable copper-gold concentrates. Ongoing testwork aims to optimize processing flowsheets further.

Project Development and Funding Outlook

Maronan is advancing permitting activities, including an application for a Mineral Development Licence expected by mid-2026, which will enable construction of an exploration decline and support feasibility studies. The company is actively engaging with potential financiers and strategic partners to secure the estimated AUD 266 million required for pre-production capital.

Management is considering a mix of equity, project finance, strategic partnerships, and offtake or streaming agreements to fund development. The dual development options provide flexibility in financing and execution, with the onsite processing plant favored for long-term value creation.

Strategic Positioning and Growth Potential

Located in the prolific Cloncurry region of northwest Queensland, Maronan benefits from established infrastructure and a supportive mining jurisdiction. The Starter Zone PEA only captures a fraction of the total mineral resource, with significant upside potential from resource conversion and expansion beyond the Starter Zone. The underground decline will facilitate further drilling and bulk sampling to unlock this value.

Overall, the PEA confirms Maronan as a potentially long-life, polymetallic mining operation with strong margins driven by silver and lead revenues, complemented by copper and gold credits. The company’s next steps focus on advancing feasibility studies, securing funding, and progressing permitting to realize the project’s full potential.