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 Mincor Nickel Operations (MNO) are expected to consist of Cassini 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.

The DFS paves the way for a Final Investment Decision (“FID”) by the Board of Mincor early in the September 2020 Quarter, which would result in first nickel-in-concentrate production being achieved in the second half of CY2021.

Mincor believes that this production timeline could be well timed to coincide with the forecast ramp-up in demand for Class 1 nickel for the burgeoning electric vehicle (“EV”) battery market.

Read the full DFS announcement here