JOHANNESBURG (miningweekly.com) – The prefeasibility study (PFS) of ASX-listed metals developer Axiom Mining’s Isabel nickel project, in the Solomon Islands has indicated that the deposit will be able to produce a consistent saprolite product “for which customers will pay a premium”, unlike other supply sources in the surrounding areas.
“The PFS has confirmed the economic viability and the world-class potential of the Isabel nickel project,” stated Axiom CEO Ryan Mount, adding that the study also highlighted the competitiveness of the operation and validated the company’s previously published scoping details.
“We will continue to work with the Solomon Islands government to bring this project into production as quickly as possible,” he added.
According to the PFS, the project, which comprises the San Jorge and Kolosori deposits, has an after-tax net present value of $188-million and an internal rate of return of 95%, based on the recent nickel market forecast.
The project will also boast a net profit margin of 35% over the 18-year mine life, as well as a low capital expenditure of $18-million.
Based on the life-of-mine, the PFS focused on the development and production of a mine production target of 1.5-million tons a year of wet product in the first year, to full operating capacity of 2.2-million tons a year by the third year.
The study also estimates an operational free-on-board cost of $11.49 per wet metric tonne, which is low compared with other worldwide nickel laterite direct shipping ore projects.
While Axiom currently owns 80% of the San Jorge deposit, it does not yet own the Kolosori deposit, though it has reapplied for the prospecting licence. The company expects to own 80% of Kolosori, if the application is successful.