JOHANNESBURG (miningweekly.com) – The new Brazilian nickel mine owned by Australia’s Mirabela Nickel has the potential to deliver 4% of total global production and become a “significant world producer”, MD Nick Poll said on Thursday.
Addressing the 2009 Australian Nickel Conference, Poll said that an initial annual output of 26 000 t had been scheduled for the maiden start-up period at the Santa Rita open-cut, located halfway along Brazil’s eastern coast.
Poll said that first concentrates were due to be poured in November, following mining start-up in August, with the openpit having a current estimated life of 19-years and a combined openpit and underground operation of at least double that.
“This will be the second largest open cut nickel sulphide mine in the world and we have the opportunity to double total mine output, which would account for about 4% of global output, if we elect to eventually develop the higher grade underground ore resources,” Poll said.
“However, while we are undertaking drilling and other studies on Santa Rita’s underground, we are focused on getting the openpit up and running smoothly and to achieve positive cash flow positions by March next year at anticipated cash costs of around $2,88 a pound.
“We intend to complete a full feasibility study on the underground project next year.”
Poll noted that if the study came in as expected, the company would expect to start underground development as soon as possible.
“An underground project of this size would take up to five years to reach full capacity and could have a mine life between 25 and 40 years. Drilling of underground resources is expected to recommence once the Santa Rita operation is cash flow positive.”
All concentrate production from Santa Rita up until 2014, has been locked into offtake sales agreements equally split between Votorantim and Norilsk.
Santa Rita has total open-cut proven and probable reserves of 121-million tonnes at 0,6% nickel, containing 726 000 t of nickel. Mining is expected to ramp up to full capacity of 6,4-million tons a year over the next year.
The initial underground resource has been estimated at 87,5-million tons at 0,79% nickel and 0,23% copper with substantial opportunity Poll said, for reserve addition because of the mineralisation’s potential at depth.
Mirabela was targeting an underground resource of between 150-million and 200-million tons.
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