Silver's having an exciting phase. Along that journey, it's been a story of de-risking, reducing costs where possible, and now we find ourselves; we've recently acquired the remaining 25% of the project, so we've consolidated that 100% ownership. We're in an absolute tier one jurisdiction. This is an easy project in that it's shallow. You're into economic ore at 20 meters from the surface. So near surface, open pit, soft. Funding is all done, so AUD 350 million in project funding secured. Offtake with Trafigura, with some more offtake to deal later this year at our leisure. We have also reduced capital costs by acquiring the DeGrussa process plant from Sandfire Resources, and I'll talk a bit later about that. Excitingly, first concentrate second half of next year. I think the current market conditions have afforded an opportunity here.
We currently, 40% of equity last year to build the project. With the current volatility, we find ourselves with just a AUD 230 million market cap. I'll run you through the latest numbers, which we just published yesterday. We've opted to deliver what we've called a project delivery plan, effectively a definitive feasibility standard study. We've done it at a time when we're obviously mid-construction, so what we've managed to do is lock in a lot of both operating costs and the capital costs. What that's delivered is an exceptional result. There's very few companies, I think, that can point to a reduction in capital two years after your development study. We'll run through that a little bit later. The major shareholder there to note is Franklin, who have joined us as part of the capital raise to build the project.
They've got just over 7%, as you can see. The lovely Lassonde Curve. We all love this, don't we? I'm pleased to say that we're on the right side of it now. You can see there, it's been a journey. We've gone through delineation, a PFS, a DFS, just growing that resource, in that eight years, we're nearly three times the size now with the resource. We've converted a lot of the resource into measure to de-risk those early years of production. That makes it really attractive today and low risk at startup. As I say, yesterday, we've delivered a project with a AUD 1 billion NPV and 97% IRR there, with just AUD 205 million left to spend to complete the project. I won't get too much into the commodities. I would imagine everybody in the room is well across lead and silver.
Look, silver's an exciting commodity. It's certainly a volatile metal, but at the same time, it's a really exciting time. It's gone through what we see as a structural change over the last 12 months. You've obviously got that growing industrial demand driving some of that, but also the current environment that we're in, obviously, and the store of wealth following gold. With lead, it doesn't get a lot of love, lead, but in reality, the lead market's extremely strong. It's the most stable metal on the LME. Underpins this project, effectively covers all of the operating costs, and leaves equity investors fully exposed to the silver price as the key margin for the project. There's a picture on site a couple of weeks ago. We've already got some fairly big gear on site now. Bulk earthworks are progressing well.
But, and just as I say at the bottom there, that's the key here. We've got a stable metal underpinning the project, a very historically stable price, and obviously, a silver price that's doubled in the last 12 months. This is what sets us apart from, I think, most assets. We've obviously in the right jurisdiction, but we've pushed that out. We've got a FEED study that we banked the project on, which was an 8.5-year mine life. Yesterday, we've announced that's pushed out now to 10.5 years, additional two years there. Offtake's done. It's a really, really competitive market for a lead silver concentrate in the current environment, and I'll talk through why that is in a moment. All the project funding's secured. Again, we've secured that 100% ownership now and then reduced costs.
Everything's on track for a wet commissioning in June next year, which is very exciting for all of us. Here's some of those key outputs from the study we announced yesterday. To put that into perspective, you can see there our market cap. We're basically trading at less than 1.5 x cash flow for the first year in a fully permitted, fully de-risked project that's halfway through construction, which I think is a very rare find on the ASX. Look, really strong outputs there. You can see a very strong 97% IRR, over AUD 1 billion NPV. Again, most of the risk gone. That FEED study that we obviously delivered in June 2024, you can see there the key outputs. What's changed? Essentially, we've banked the project on that study.
In the last two years, as we've moved to detailed design and just optimized various parts of the project to gain that acquisition of the used process plant from DeGrussa. That comes with AUD 10 million worth of brand-new spares. Perfect fit for the project. Everything that we designed with a few nice-to-haves as well. But you can see, there's a lot of very positive changes there. Certainly, obviously, the move in silver price, a big driver to a lot of that, of course. Along with the study yesterday, we also did introduce the essentially upgraded mineral resource. So we've now got 50 million tonnes, which is a 7% increase in tonnes. We've done that just to support that new reserve calculation, and obviously we've seen increases there as well. It's a breakdown of the resource today.
Essentially 50 million tonnes at about 60 grams a tonne silver equivalent, or around that 100 million ounce equivalent resource. Again, this 10.5-year mine life that we've outlined to date—that's 20 million tonnes of that 50 that you see there in the resource. So lots and lots of upside potential. We've continued to drill this every year. We continue to push out those resources and convert into reserves. So, it bodes well for the future. What you can see there is a breakdown of the resource. As you can see, there's a big portion of that now in measured. What I would note there is, and it's very rare in new startups, you'll see there two-thirds of the reserves have been moved to the proven state. That's a result of obviously a very shallow ore body.
All the early years of mining essentially have been drilled with 20-meter spacing. That just takes out all of that risk for early startup, getting the ore to the ROM pad, and just gives us confidence that we can work within the timelines. You can see there the updated reserve, 18.3 million. The ore body's absolutely open in all directions. There's already well-defined resources that will fall in as the commodity prices move. That's an outline there of the existing pits, and you can see there that the ore body just dips off gently to the east, being predominantly flat. We've got a rig on site at the moment. Interestingly, we've recently reported some really, really impressive results that all sit outside the current designs as well. Every year we continue to get excited about just how far this project will go.
We'll continue to do so. Obviously once cash flows are there, it will increase those budgets to look to push out that mine life even further. This is what makes this project really interesting. As I said, lead doesn't get a great deal of attention in the market, but it plays a crucial role in this project in that it covers all your operating costs. It's a very stable metal, so you can sort of plug in your AUD 2,000 a tonne number and have confidence that it's going to be in and around there and has been for decades. When you sort of plug that in as a credit, that just gives you an all-in sustaining cost of about AUD 8.70 an ounce. Obviously today's price is in the 60s.
It's a very, very low-cost silver producer if you look at it like that, and we'll be producing over 2 million ounces a year. That's the DeGrussa process plant there on the right. On the bottom left, you can see our original design, incredibly well matched to the DeGrussa plant. It was quite unbelievable , really, just when we went through it, just how well matched it was for the project. As I say, it was everything that we needed, plus a few nice to-haves as well. What that gave us was a reduction of AUD 20 million in the capital cost for the plant itself. But more importantly, and I guess more difficult to quantify, but a reduction of six months in the construction period. When you're drawing down debt, building a project in an exciting silver market—that's really important.
As I say, that sees us commission this process plant in June next year, which is very exciting. We've obviously got a port access agreement. This project is fully permitted. The port's permitted. Obviously we're on granted mining tenements. All the environmental approvals are in place. We're ready to go. We deliver a product; it'll be around a 65% lead, just under 70,000 tonnes of lead metal per year, and just over 2 million ounces of silver. The market for silver-lead concentrates has been extremely tight for some time. In particular, the last sort of 18 months to two years, we've seen very variably discounted treatment charges. As we stand today, the current spot treatment charge for a good quality silver-lead concentrate such as our one is about - 300 US a tonne as we sit today. We did originally sign 75% offtake with Trafigura.
That was how much of the project we owned at the time. What we did though was built in some terms in there whereby if we didn't need to take the debt that they'd offered, which was $30 million U.S., then we had the opportunity to then pull them back to 50% of the product. Importantly, also got us exposure to spot treatment charges. Naturally, in December, that's exactly what we did. We found additional funding and pulled that back to 50%. That's left us in a strong position today, because we've just gone out for a tender process on the remaining 50%. The key aim there is not necessarily just to secure a contract over the product. We don't need to do that.
The lenders are perfectly happy for us just to keep 50% under sales contract, but it's to try and lock in those negative TCs. I can tell you, it's a very significant impact to your cash flows if you could lock those in for a year or two. I've just gone out for the first two years of that remaining 50%. That's the aim there, to lock that in and look forward to hopefully closing that process out before the end of the year. This just took us through exactly where we're at with the construction. Diesel supply contract executed. We're very fortunate in East Kimberley in that Wyndham Port has very large strategic fuel reserves as well as its own. Fuel supply is no issue there, and it's some of the lowest cost fuel in Australia, actually. That contract's in place.
Dismantling of DeGrussa is well and truly underway. ROM pad, tailings facility, everything's all under construction now. Construction of the evaporation pond as well is also underway. We're just coming to an end of the drill program, which I look forward to announcing some results to, towards the end of the year as well. Which, as I say, bodes well for even more life extension as we move forward. This is just project location there. As I say, we're in the far north of Western Australia, just a couple of kilometers out from the Northern Territory border. Importantly, just 150 km from Wyndham Port. Wyndham Port already ships metal concentrates. It's Australia's closest port to Asia. No infrastructure upgrade required there other than a wash bay for our trucks. There's an existing hardstand.
We will move the product from mine site to the port in Rotainers and then ship in bulk. As you can see there, that puts us amongst some pretty big names there. We'll be the fourth-largest producer of silver once operational next year. Just from a contracting point of view, just in the last couple of days, we've announced binding terms have been agreed with a mining contractor. That contractor is RE:GROUP, who are already familiar with the region, operating at Kimberley Mineral Sands. We've ordered long lead items. The diesel power plant is all ordered and will be fully operational for when we need it early next year. We are working also with Horizon Power. There's a great opportunity to secure clean hydropower for the project as a result of the Argyle diamond mine closing. There's capacity there.
We are very advanced now with Horizon Power and a contractor to build the power lines out, which is a 52km stretch from town. That would see us with lower cost and clean energy for the project and delivered within 12 months of the kicking off production. I am hoping to close that out before the end of the year as well, and that will just be a value add for the project. I ran through all the key engineering works. Everything is underway there. Construction on site is really ramping up over the last few weeks. This is a timeline that sees us to full production in late Q3 next year. As I say, everything is on track as outlined there in the schedule. Future growth.
This was a photo from just a few weeks ago, just looking at some of the core that is just coming out of this program. We also own 100% of the Manbarrum Project, which sits just 25 km to the east of Sorby Hills, with a lovely highway between the two projects. It has an existing resource, but we like it more for the broader package. It is the same mineralization as Sorby Hills, so it is an MVT carbonate-hosted deposit. We have learnt a lot at Sorby as we have grown the resource nearly three times over the last seven years. We think we can add a lot of value to that project and looking forward to really getting stuck in some exploration there and also to the south of Sorby.
Earlier stage there, but in the right rocks to potentially find more of the Sorby Hills mineralization, as well as all that mineralization around the fringes of the existing pits that we will be digging over the next few years. So, lots and lots of growth opportunity. This will be a much longer project than the initial 10. 5 Years that we have outlined in the study. Now, with just AUD 205 million to complete the project. As I say, we have not drawn any debt to date. We still had almost AUD 50 million in the bank at the end of last month. So, we are in a really great position. Current price is on the left and then the base case, which is the future curve on the right there, which produce some pretty impressive numbers and importantly all based on locked-in costs.
So both operational as well as the CapEx to build the project. It is very rare you can read a study with sort of 80% of those costs locked in. What is to come? I have touched on some of this already, but that competitive tender for the remaining offtake is underway. We think we can deliver a really good result there. More resource growth. We have obviously drawn a line in the sand with the resource to get these pits optimized, but there is further opportunity there. I think we are in a great market for silver going forward. So, earlier next year, you are going to see regular construction updates and obviously completion of major work streams as we move towards the commissioning in June. Really exciting time for the project, for the company as a whole. Thank you, and happy to take questions.
Thank you, Simon. We are a little bit squeezed for time. Luke?
Yeah, Simon. Yeah, got you, mate. Yeah, mate, just curious on that fuel advantage you've got. Like, diesel's a thing. We're paying AUD 3 a liter in Perth. It'd be quite a large percentage of your cost base, I would've thought. That obviously would be a big assistance.
Yeah, absolutely. You might have seen in the news recently, but the state government just did a deal with the Wyndham Port as well to store, I think, another 7 million liters of fuel. So, it's a heavily discounted rate up there with lots of storage. So, I think anybody that's got any issues around future supply of diesel, I think can rest assured we're in the best spot in the country for that. To give you some idea of costs, what was it now? Three or four months ago, we were sort of at that AUD 3.20. I think we had that fuel supply come out, fill our 400,000 liters of fuel in our tanks for AUD 1.70 that same week. So, obviously, that'll move around, but they buy in such large volumes that we're in a great position there.
I think, the opportunity with the Horizon Power as well, which reduces exposure to diesel, is one that I'm very keen to lock away.
Great. Okay. We'll leave it there, but thank you very much, Simon.
Thank you.