TORONTO (miningweekly.com) – TSX-V-quoted Noront Resources on Tuesday published the results of a prefeasibility study into its Eagles Nest nickel-copper-platinum project in Ontario’s Ring of Fire, outlining a $734-million capital investment for a one-million-ton-a-year mine.
The study, which Micon conducted, predicted a three-year capital payback, and gave the project a C$560-million net present value at a 6% discount rate.
Noront CEO Wes Hanson said this was the first mineral reserve published for the emerging Ring of Fire camp, and that it was a “milestone” that will “accelerate meaningful discussion on infrastructure” development in the area.
“It positions the company to begin negotiating downstream agreements that will provide future funding for continued development of the project without excessive shareholder dilution,” he added in a statement.
US-based Cliffs Natural Resources also owns nickel and chrome projects in the area, and aims to build a ferrochrome plant and railway line in Ontario.
According to Hanson, Noront will complete a feasibility study on the Eagles Nest project in the first quarter next year, with first commercial production set for 2016.
Shares in Noront gained 2% on Tuesday to trade at C$0.51 apiece, valuing the company at just over C$100-million. The firm announced the positive prefeasibility study results after markets had already closed.