Name and Location
Agata iron/nickel laterite project, Agusan del Norte province, Philippines.

Client
The project is a joint venture between Agata Processing Inc (API), a subsidiary of Mindoro Resources, and TVI Resource Development (TVIRD). TVIRD has the right to earn a 60% interest in API from Mindoro.

Project Description
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.

Net Present Value/Internal Rate of Return
Not stated.

Value
The Agata project will require a capital investment of about $10.1-million.

Duration
Not stated.

Latest Developments
Mindoro Resources says API expects to complete a definitive feasibility study (DFS) for a nickel processing plant at the Agata project by the end of this year.

The proposed plant will use a two-stage process, involving atmospheric tank leaching and low-pressure acid leaching, to process nickel. The two-stage process has been specifically engineered by TVIRD to reduce the capital expenditure (capex) requirement for the project.

API and TVIRD are expected to invest between $150-million and $200-million in capex to establish the plant, which will have the capacity to produce 7 000 t/y of nickel-equivalent product.

The high-pressure acid leaching nickel processing plant requires capex of more than $1-billion to establish.

“We are extremely pleased with the progress being made by the API JV in nearing completion of the DFS.

“Building on the current high iron/low nickel direct shipping ore operation, the proposed nickel processing plant would receive feed from the same mining site and produce an intermediate nickel product at low costs. We look forward to completion of the DFS by the end of the year and the significant value we believe it will add to Mindoro's Agata project,” said Mindoro CEO Penny Gould.

The existing DSO operation at Agata was focused on the upper zone of the Agata laterite orebody.

The proposed nickel processing facility would process ore from the lower limone and saprolite zones to produce a mixed hydroxide product with about 40% nickel content, which would be sold to the stainless steel market.

Once the DFS had been completed, TVIRD would move into the detailed plant design and construction phases.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Mindoro Resources, tel +1 780 413 8187, fax +1 403 290 8197 or email ir@mindoro.com.
TVI Pacific, tel +1 403 265 4356, fax +1 403 264 7028 or email tvi-info@tvipacific.com.