Name of the Project
Sconi cobalt/nickel/scandium project.

Location
North Queensland, Australia.

Project Owner/s
Australian Mines.

Project Description
The Sconi project’s economics and mine plan have been updated.

Sconi, which includes the Greenvale, Lucknow and Kokomo mineral deposits, now has total estimated mineral resources of 75.71-million tonnes at 0.60% nickel and 0.08%.

This is as a result of a 63% increase in the tonnage of the Greenvale mineral resource and a 94% increase in the Lucknow resource. Kokomo has total mineral resources of 28.47-million tonnes grading 0.57% nickel and 0.09% cobalt. The project has proven and probable reserves of 57.3-million tonnes grading 0.58% and 0.08% cobalt and 35 parts per million.

In light of the updated ore reserve, new pit designs have been developed for the Greenvale and Lucknow ore.

The optimised Greenvale pit design now captures 97.4% of the ore with only a slight 2.5% increase in waste. The Greenvale mining area comprises two large main pits (Pit 1 and 2) with multiple internal stages and eight smaller pits, with a stockpile from historical mining operations designated as Pit 10.

In total, the pits contain 17.8-million tonnes of ore at 0.76% nickel and 0.06% cobalt, with 28.9-million tonnes of waste for a very favourable overall strip ration of 1.6:1. The optimised Lucknow design captures an impressive 99% of the ore with only a 6% increase in additional waste.

The Lucknow mining area comprises a large main pit with 13 internal stages, and a single smaller pit to the south (Stage 12).

In total, the pits contain 20.8-million tonnes of ore at 0.42% nickel and 0.08% cobalt, with 20.8-million tonnes of waste and an overall strip ratio of only 0.5:1.

The Kokomo pit design remains unchanged, capturing 90% of the ore with about 20% waste, while the Kokomo mining area comprises a large centrally located main pit with ten internal stages, and eight smaller satellite pits.

The project is now expected to produce 1.41-million tonnes of nickel sulphate (up 46%), 209 000 t of cobalt (up 37%) and 1  441 t of scandium over the project life.

Potential Job Creation
About 500 staff will be employed during construction and, once the project is in production, 300 staff.

Net Present Value/Internal Rate of Return
The updated economics of the mine show the pretax net present value has increased by 12% to $1.47-billion at a 5% discount rate, while the internal rate of return has been revised down slightly to 20%.

Capital Expenditure
The project is estimated at $974-million, including a $110-million contingency.

Planned Start/End Date
Not stated.

Latest Developments
The company is continuing work to maximise value for shareholders.

Key Contracts and Suppliers
Ausenco, Orelogy and Simulus Laboratories.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Australian Mines, tel +61 7 3184 9184 or email info@australianmines.com.au.