Que River’s Low Capex Plan Faces Market and Regulatory Hurdles
Greenwing Resources has unveiled a scoping study for its Que River polymetallic project in Tasmania, outlining a low capital expenditure route to potentially generate A$63 million in cash flow within a year. The study leverages existing infrastructure and highlights significant exploration upside beneath existing pits.
- Low upfront capital expenditure of ~A$10 million
- Potential to process ~665,000 tonnes with NSR of A$189/t
- Undiscounted cash flow estimated at ~A$63 million over 12 months
- JORC 2012 resource of 2.4 Mt at 9.5% zinc equivalent
- Strong exploration upside with high-grade gold and silver intercepts
A Low-Cost Pathway to Production
Greenwing Resources Ltd has released a compelling scoping study for its 100% owned Que River polymetallic project in Tasmania, signalling a potentially cash-positive redevelopment opportunity. The study highlights a modest capital requirement of approximately A$10 million to restart conventional open-pit mining operations, leveraging existing regional infrastructure and previous mine workings.
Mining at Que River ceased in 2012 amid lower commodity prices, particularly for gold, silver, and copper. Today’s improved metal prices underpin the economic case for reactivation, with the study projecting the processing of around 665,000 tonnes of ore at a net smelter return (NSR) of about A$189 per tonne. This translates into an estimated undiscounted cash flow of roughly A$63 million within a production period of less than 12 months.
Robust Mineral Resource Base and Exploration Potential
The project boasts a substantial JORC 2012 mineral resource of 2.4 million tonnes at 9.5% zinc equivalent, containing significant quantities of zinc, lead, copper, gold, and silver. This polymetallic mix enhances the project’s value proposition, with gold and silver credits contributing meaningfully alongside base metals.
Importantly, the scoping study incorporates inferred resources and remains preliminary, underscoring the need for further drilling and feasibility studies to confirm economic viability. Nonetheless, the company has identified multiple high-grade gold and silver intercepts beneath and adjacent to existing open pits, including exceptional zinc equivalent grades exceeding 80%, which point to strong exploration upside and potential resource extensions.
Environmental and Regulatory Progress
Greenwing has also made strides in aligning the Que River site with best environmental practices, updating its care and maintenance schedule and establishing an environmental rehabilitation liability estimated at A$2.5 million. The company acknowledges the proactive support of the Tasmanian Environmental Protection Agency and Mineral Resources Tasmania in progressing site compliance and rehabilitation efforts.
While no ore reserves have yet been declared and the study’s outcomes depend on metal price fluctuations and further technical work, the scoping study provides a solid foundation for advancing the project. The existing infrastructure and historical mining experience at Que River reduce the capital intensity and technical risk typically associated with greenfield developments.
Looking Ahead
CEO Peter Wright emphasized the encouraging nature of the study, noting that Que River’s previous production at lower commodity prices and the current resource base position the project well for redevelopment. The company plans to continue advancing the asset with further updates expected in the near term.
Bottom Line?
Greenwing’s Que River project is poised at a promising inflection point, but the path to production hinges on upcoming feasibility work and market conditions.
Questions in the middle?
- How will metal price volatility impact the project’s economic viability?
- What are the timelines and key milestones for advancing to prefeasibility and feasibility studies?
- Can Greenwing secure processing and sales agreements to underpin commercial operations?
