Name and Location
Nova-Bollinger nickel mine, Australia.

Client
Sirius Resources.

Project Description
A scoping study on the Nova-Bollinger has indicated that it is a technically low risk and economically robust nickel project.

The project has a total Joint Ore Reserves Committee-compliant mineral resource of 14.6-million tonnes, grading 2.5% nickel equivalent, 2.2% nickel, 0.9% copper and 0.08% cobalt.

The study proposes a mine with a 1.5-million-tonne-a-year throughput plant, resulting in average production of 28 000 t/y of nickel, 11 000 t/y of copper in concentrate and 900 t/y of cobalt in concentrate over an initial mine life of ten years.

The planned mining schedule comprises an underground mine accessed by a decline.

Underground extraction will be mainly through a sublevel open stoping mining method, which, together with the planned use of stabilised backfill, will enable maximum extraction.

A trucking operation to transport mined material and waste to surface is envisaged in the scoping study.

An underground crusher and a conveyer to surface option will be considered as part of the various alternatives to be reviewed in the definitive feasibility study (DFS), which is currently under way.

The mining schedule envisages the systematic development of the main part of the deposit to have three to four large stopes on line at any time, with some of these up to 75 m high.

As a result, most of the material being mined at any given time will be in the indicated resource category.

During the first 12 months of production, 89% of the material scheduled to be mined will be based on indicated resources and only 11% on inferred category material.

The processing plant will comprise conventional crushing, milling and classification circuits, followed by two stages of conventional flotation and dewatering and filtration to produce separate nickel (+cobalt) and copper (+silver) concentrates.

Value
The project has an estimated capital cost to first concentrate production of A$471-million, including A$51-million of contingency.

Duration
The processing facility is scheduled to start construction in the third quarter of 2014, with a two-year timeframe for commissioning.

The project is expected to start in mid-2016.

Latest Developments
The DFS is on track to be completed by mid-2014, enabling underground development, and on-site construction is expected to start in the third quarter of 2014.

Work conducted through the course of the DFS has the scope to further improve the Nova project’s already robust economics by optimising factors such as stope sequencing.

Key areas of additional work will include water exploration and paste fill characterisation. The proposed mining and processing operation will require process water and it is, therefore, necessary to quantify the amount and quality of water available for this future purpose.

Detailed assessments of water supply have started and studies are under way to characterise the paste fill required for the proposed mining schedule.

The company continues to make progress on baseline environmental surveys and studies. Flora, fauna, waste characterisation, tailings characterisation, soils and landform studies have all started and are proceeding well.

Sirius expects to make its approval submissions on schedule in the second quarter of 2014.

The DFS will progress in conjunction with the ongoing exploration programme within the company’s 70%-owned Fraser Range Joint Venture ground and also its 100%-owned Fraser Range ground holdings.

The project’s concentrate offtake remains uncommitted, allowing maximum marketing flexibility.

Sirius has been approached by several potential buyers for this concentrate and by funding providers in relation to the project’s development financing.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sirius Resources, tel +61 8 6241 4200, fax +61 8 6241 4299 or email admin@siriusresources.com.au.