PERTH (miningweekly.com) – Dual listed Clean TeQ Holdings is assessing an increased nameplate capacity for its Sunrise nickel/cobalt project, in New South Wales, with the aim of completing a definitive feasibility study (DFS) in June.
A 2016 prefeasibility study (PFS) estimated that for a capital cost of $680-million, Sunrise could be developed into a 18 730 t/y of contained nickel and 3 222 t/y of contained cobalt operation, with an initial mine life of 20 years.
The ASX- and TSX-listed company told shareholders on Thursday that extensive optimisation work had been done since the PFS was completed, resulting in an updated resource estimate.
The DFS is now targeting substantially increased metal production over the first ten years of the operation, with refinery capacity increased to 7 000 t/y of cobalt and 25 000 t/y of nickel, in order to maximise production optionality.
Clean TeQ told shareholders that the higher revenue from the increased metal production, as well as stronger metal prices, was expected to offset any larger investment in capacity.
While the updated DFS is under way, Clean TeQ is also engaging with a number of parties regarding potential offtake agreements, with the company saying on Thursday that there had been strong interest shown from major international companies.
The company is hoping to secure binding offtake agreements for the majority of nickel and cobalt production prior to a final investment decision.
Discussions around project-level investments were also progressing, with several parties expressing interest, Clean TeQ told shareholders.