TORONTO (miningweekly.com) – Site development for the Agata direct-shipping iron-ore project, located in Agusan del Norte, Mindanao, the Philippines, is set to start in May after joint venture (JV) partners TVI Pacific and Mindoro Resources on Monday received the declaration of mining project feasibility (DMPF) and clearance to develop a port.

The Agata Mining JV (AMJV) said that the DMPF authorised it to proceed to development, including the mining and sale of iron, nickel and other associated minerals in the contract area.

The Agata project is a JV of TVI Pacific and 75% owner, Edmonton-based Mindoro Resources.

Shipping of the high-iron laterite is expected to start in the third quarter, subject to receiving the remaining port approvals and financing. The Agata project will require a capital investment of about $10.1-million.

The DMPF, granted by the Philippine Mines and Geosciences Bureau of the Environment and Natural Resources Department, also confirmed that AMJV had complied with several other approval requirements.

The Agata project has a measured and indicated resource of 33.9-million tonnes grading 1.1% nickel and an inferred resource of two-million tonnes at 1.04% nickel.

The iron/nickel laterite project is being advanced in two stages under the JV.

The JV partners intend to develop a near-term high-iron laterite direct shipping ore (DSO) operation and a limestone DSO operation.

Later in the project’s life, the JV partners plan to build a lime plant and a nickel processing plant, for which pilot testing is under way.

TVI has produced nickel hydroxide product at its pilot plant.

A pregnant leach solution was passed through a counter-current ion-exchange pilot plant that recovered about 99.3% of the nickel. After dewatering, the filter cake graded between 52% and 54% nickel, which validated the company’s process and established all design parameters for the full-scale plant. TVI also produced a mixed hydroxide product grading 36% nickel, which after a two-stage precipitation step, could be upgraded to a grade of more than 40% nickel.

The final stage of pilot plant operation will comprise treating the barren solution from the ion-exchange plant to produce a disposable effluent and to perform ecological tests for residues. This will be followed by a definitive feasibility study.

Meanwhile, the feasibility study on the DSO project is nearing completion and, subject to economic viability and final permitting, will lead to the start of a DSO operation in 2014.