Based on its 29% increase in contained metal reserves, the company has boosted total pre-tax net present value from the original BFS estimate by 59% to A$209.6 million, while the internal rate of return has surged from 154% to 397%, while life of mine earnings jumped from $207 million to $324 million.
In addition to its recently revised reserves and resources, EQ has been able to improve its changing underlying cost and revenue assumptions for the longer 14-year mine life with a 15% more concentrate containing 50% tungsten.
Life of mine production is now 31,000t of the critical metal.
The expansion remains low-cost, requiring just $21.4 million, of which $5 million has been spent already.
Payback is expected to be just 18 months.
The BFS assumes slightly higher C1 cash costs of US$118 per metric ton units (10kg), compared with a sales price expected to be around $369/mtu over the long-term, significantly higher than originally expected.
CEO Kevin MacNeill said the phase one production program had delivered invaluable data and project development insights and allowing process optimisation to deliver targeted recoveries of 79.5% on an ongoing basis.
"We are now prioritising further resource drilling on the projected western extension of the Mt Carbine orebody with a view to expanding the near-pit mine reserves," he said.
"Any successful results from the drill campaign could be quickly brought into life of mine planning."
EQ recently raised A$4.56 million at 4c to support the expansion and is looking to finalise a $6 million federal government grant.
Regal Resources Royalties Fund has agreed non-binding terms on a first stage $10 million royalty-based funding package for the project, with a potential second-stage $10 million royalty.
EQ resurrected Mt Carbine in 2020 and has been gradually working with ore sorting to improve production from stockpiles to produce a tungsten concentrate.
It also quarries aggregate and road-making materials.
Resources at Mt Carbine are now stated at 12 million tonnes at 0.27% tungsten for 3.29 million metric tonne units. Reserves are 1.9Mmtu.
The stock has traded at 4-7.8c over the past year and was up 5% this morning at 4.4c, valuing EQ at $58 million.
