Mincor completed a positive Definitive Feasibility Study (DFS) for its nickel restart strategy in March 2020, confirming the potential to develop a 5-year operation producing 63,000 tonnes of recovered nickel-in-concentrate with relatively low capital intensity - including estimated pre-production capital expenditure of $68 million and pre-tax Internal Rate of Return (IRR) of 98% - and attractive financial returns.
The Kambalda Nickel Operations (KNO) will initially comprise the Cassini Nickel Mine and the Northern Operations (Long and Durkin North mines) at commencement, with the Miitel mine contributing in the back half of the project life. The flagship Cassini mine (a greenfields discovery by Mincor) is forecast to contribute 56% of the total nickel-in-concentrate production over the initial life of the Project.
Importantly, the DFS reflects a starting position only, as potential extensions to the life-of-mine have been identified at Cassini, where diamond drilling continues to return broad high-grade intercepts outside the current Mineral Resource boundary. At the Northern Operations, underground drilling is planned once mine development commences targeting extensions and new discoveries in this well-endowed nickel mining area.
Mincor announced a Final Investment Decision (FID) for the Kambalda Nickel Operations on 17 September 2020 after securing credit-approved terms for a highly competitive $55 million project debt facility.
A Syndicated Facility Agreement for this debt facility was subsequently executed on 26 March 2021 which, together with existing cash reserves, ensured that a fully-funded structure is in place to underpin the development of the KNO.
First nickel-in-concentrate production is expected in Q1 2022, paving the way for Mincor to become a clean, efficient and modern nickel sulphide producer, ready for the new era of nickel demand from the EV and renewable energy sectors.
Read the full DFS announcement here