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

Location
The project is located in New South Wales, in Australia.

Client
Clean TeQ.

Project Description
A definitive feasibility study (DFS) has confirmed the Sunrise project’s status as a globally significant cobalt, nickel and scandium resource that, once developed, will become a significant supplier of critical raw materials to the lithium-ion battery market.

The project has total mineral reserves of 147.4-million tonnes grading 0.56% nickel, 0.09% cobalt and 53 parts per million scandium.

The DFS is based on a 2.5-million-tonne-a-year ore throughput rate and an initial mine life of 25 years, with enough ore reserves to extend production for more than 40 years.

The mine will deliver 450 871 t of nickel, 84 007 t of cobalt, 250 t of scandium oxide and 2 337 t of scandium hydroxide.

The project will also have the capacity to produce up to about 93.5 t/y of scandium oxide, stockpiled as scandium hydroxide intermediate product, over the first 25 years. A dedicated scandium refinery, with an 80 t/y high-purity scandium oxide refining capacity, is included in the DFS capital cost estimate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.39-billion and an internal rate of return of 19.1%, with a payback of 4.3 years.

Value
Preproduction capital is estimated at $1.33-billion.

Duration
A final investment decision is expected in early 2019, with construction expected to start shortly thereafter.

Latest Developments
The DFS enables the company to progress to the next stage of development milestones, including offtake agreements, completion of project financing and the start of construction subject to the final investment decision.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Clean TeQ, tel +61 3 9797 6700 or fax +61 3 9706 8344.