PERTH (miningweekly.com) – Metals miner Independence Group has produced its first concentrate at the Nova nickel/copper project, in Western Australia’s Fraser Range.

“The production of first nickel and copper concentrate is a key milestone for the Nova project. Based on the definitive feasibility study, the first concentrate was not scheduled to be produced until December 4, but this milestone has now been achieved, some six weeks ahead of plan,” Independence CEO and MD Peter Bradford reported on Wednesday.

Commissioning of the Nova nickel processing plant also started about four weeks ahead of schedule, and despite the fast-tracked development, the project has remained on budget at A$443-million.

The next key milestone for the processing plant will be the performance testing, which will start in November with practical completion likely to be achieved in December.

“Our near-term focus is on demonstrating steady-state operations at design throughput rates and production of nickel and copper concentrates at the design grade, specifications and recovery. This will be followed by delivery of nameplate capacity in accordance with plan by mid-2017.”

The first shipment of nickel concentrate to BHP Billiton Nickel West is expected in December, while the first offshore shipment of copper and nickel concentrate will be made in early 2017.

The underground mine is also expected to ramp up to full production by mid-2017.

At full production, Nova is expected to produce 26 000 t/y of contained nickel and 11 500 t/y of contained copper, at an all-in sustaining cost of A$1.83/lb. The project is expected to initially operate for ten years.

Meanwhile, Independence on Wednesday reported an 11% decline in quarterly revenues for the three months to September, as a result of the timing of shipments, which resulted in lower zinc revenue from the Jaguar mine, in Western Australia.

Total revenue for the quarter reached A$92.8-million, down from the A$105.9-million reported in the June quarter.

The Jaguar mine delivered A$30.8-million in revenue during the quarter, while the Tropicana gold mine delivered a further A$43.2-million and the Long nickel mine some A$19.6-million.

The Jaguar mine produced 10 309 t of zinc and 1 887 t of copper during the quarter under review, compared with the 8 937 t of zinc and 3 235 t of copper produced in the previous quarter.

Gold production from the Tropicana joint venture, in Western Australia, increased from 95 133 oz in the June quarter to 100 038 oz during the three months to September, while the Long operation, also in Western Australia, produced 2 166 t of nickel, compared with the 2 018 t delivered in the previous quarter.

“This was an excellent quarter for Independence with all mines delivering at or better than guidance,” Bradford said.

He noted that in addition to first concentrate production at Nova, Independence’s investment to expand the processing capacity at Tropicana, and to extend the project’s mine life, was also well advanced.

Commissioning of two additional carbon-in-leach tanks, which represents the final stages of the processing plant optimisation work, was completed in October.

“We are approaching a very exciting time for Independence with a number of major value catalysts ahead,” Bradford said.