Name of the Project
Kambalda nickel restart project.

Location
The project is located in the Kambalda district of Western Australia.

Project Owner/s
Mincor Resources.

Project Description
A definitive feasibility study has proposed the development of a mining operation, pro­duc­ing 63 000 t of recovered nickel-in-concentrate, with relatively low capital intensity.

The initial five-year operation is based on 2.5-million tonnes of ore, grading 2.9% nickel for 71 000 t of contained nickel-in-ore and 5 000 t of copper-in-ore.

The Mincor Nickel Operations are expected to comprise the Cassini and Northern operations (Long and Durkin North) at the start, with the Miitel mine contributing towards the back half of the project life.

The flagship Cassini mine (a greenfield discovery by Mincor) is forecast to contribute 56% of the total nickel-in-concentrate production over the initial life of the project.

The mine plan involves underground extraction of the Cassini deposit through a boxcut and decline, mining 1.2-million tonnes of ore at an average nickel grade of 3.3% over five years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $305-million and an internal rate of return of 98%, with a payback of 12 months.

Capital Expenditure
Preproduction capital is estimated at $68-million, mainly associated with mine development and related infrastructure.

Planned Start/End Date
First nickel-in-concentrate production is expected in the second half of 2021.

Latest Developments
A final investment decision is expected early in the September quarter.

Mincor has noted there is current uncertainty associated with the impact of Covid-19 and the rapidly evolving nature of this pandemic.

The company has said that while it is not possible to forecast the implications of Covid-19 on the Kambalda project, it believes it is equipped to deal with any potential project impact stemming from Covid-19, given its strong cash position and zero debt.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Mincor Resources, tel +61 8 9476 7200 or email mincor@mincor.com.au.