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PERTH (miningweekly.com) – A prefeasibility study (PFS) into the NiWest nickel/cobalt project, in Western Australia, has estimated that the project could produce 456 000 t of nickel and 31 400 t of cobalt over a 27-year mine life, based on a nameplate processing capacity of 2.4-million tonnes a year.
Owner GME Resources told shareholders that the project is expected to average yearly production of 19 200 t of nickel and 1 400 t of cobalt over the first 15 years of the mine life.
The PFS estimated a preproduction capital expenditure of A$966-million, with average cash unit operating costs estimated at $3.24/lb. Based on life-of-mine price estimates of $8/lb of nickel and $25/lb of cobalt, the NiWest project is estimated to have a post tax net present value of A$791-million and an internal rate of return of 16.2%.
“The PFS has confirmed the technical and financial merits of the development of a standalone processing facility to treat the NiWest deposits. The chosen processing route for NiWest adopts commercially proven, lower-risk, lower-capital intensity heap leaching, coupled with highly efficient direct solvent extraction,” said GME MD Jamie Sullivan.
“The elevated technical and economic risks associated with high pressure acid leaching and atmospheric leaching have been consciously avoided. The net result is forecast low-cost production and high purity nickel and cobalt sulphates.”
Sullivan said that the maiden reserve ore estimate of 64.9-million tonnes, at 0.91% nickel and 0.06% cobalt, delivered ore to the plant for the first 18 years of operation, with substantial opportunity existing to extend the high-grade feed profile through the conversion of inferred material or the inclusion of up to four other deposits into the project schedule.
GME will use the PFS results to undertake engagement with potential strategic partners and offtake parties, and will work on the proposed scope of the definitive feasibility study, assessing a range of additional value engineering opportunities and starting the selection of critical path activities.