PERTH (miningweekly.com) – The Queensland government has granted ASX-listed Australian Mines an environmental licence for its proposed Sconi scandium and cobalt project, allowing the company to advance development plans for a mining operation.
“Having now secured all the necessary approvals and licences to commence a full-scale mining operation at Sconi, Australian Mines finds itself uniquely positioned with the only Australian scandium-cobalt deposit able to go into immediate production,” said MD Benjamin Bell on Thursday.
He noted that a prefeasibility study completed on the Sconi orebody had confirmed it had the potential to produce some 5 250 t/y of nickel, 700 t/y of cobalt and 68 t/y of scandium for at least the next 20 years.
“This positions Australian Mines to be a significant supplier of scandium in a growing global market, from one of the lowest risk mining jurisdictions in the world.”
With the environmental approval in place, and anticipating a positive outcome of the definitive feasibility study (DFS), Australian Mines has now started discussions to secure the necessary construction funding.
Using funds from a recent capital raise, Australian Mines will also process a bulk tonnage sample of ore material from Sconi, as part of the DFS, to generate samples of both scandium oxide powder, as well as the nickel and cobalt sulphate products, to advance discussions with potential offtake partners.
Australian Mines can earn a 75% interest in the Sconi project from owner Metallica Minerals.
The first 50% interest will be subject to the completion of the DFS, or a A$10-million spend within a four-year period, with a further 25% to be acquired after Australian Mines arranges suitable finance for the development of the project, within 18 months of completing the Stage 1 earn-in.