PERTH (miningweekly.com) – A scoping study into the Saints nickel project, in Western Australia, has estimated a capital cost of A$10.68-million to develop the project.
ASX-listed Future Battery Minerals on Tuesday reported that the scoping study considered a simple infrastructure and mine development supporting a toll treatment operation within close proximity to several third-party concentrators.
The scoping study estimated that based on the five-year life-of-mine, the project would have a pre-tax net present value of A$55.7-million and an internal rate of return of 362%.
“We are extremely pleased with the positive scoping study results and see this as a significant step forward in de-risking the Saints nickel project. When the company commenced the study, the aim was to understand the economics of the existing resource and the potential to commercialise and fund further exploration from the base of underground development,” said Future Battery Minerals executive chairperson Mike Edwards.
“The free cash flows generated by a simple and short-term underground mining operation of the existing high-grade resource now provide the company with the confidence to undertake a prefeasibility study and to continue exploration work. However, the project provides substantial upside if current nickel prices persist or if exploration successfully discovers further resources at depth to potentially extend the life-of-mine.”