Name of the Project
Kambalda nickel restart project.

Location
The Kambalda district of Western Australia.

Project Owner/s
Mincor Resources.

Project Description
A definitive feasibility study has proposed the development of a mining operation pro­duc­ing 63 000 t of recovered nickel-in-concentrate with relatively low capital intensity.

The initial five-year operation is based on 2.5-million tonnes of ore grading 2.9% nickel for 71 000 t of contained nickel-in-ore and 5 000 t of copper-in-ore.

The Mincor nickel operations are expected to comprise the Cassini and Northern operations (Long and Durkin North) at the start, with the Miitel mine contributing towards the back half of the project life.

The flagship Cassini mine (a greenfield discovery by Mincor) is forecast to contribute 56% of the total nickel-in-concentrate production over the initial life of the project.

The mine plan involves underground extraction of the Cassini deposit through a boxcut and decline, mining 1.2-million tonnes of ore at an average nickel grade of 3.3% over five years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $305-million and an internal rate of return of 98%, with a payback of 12 months.

Capital Expenditure
Preproduction capital is estimated at $68-million, mainly associated with mine development and related infrastructure.

Planned Start/End Date
First nickel in concentrate is scheduled for late in the first quarter of next year.

Latest Developments
Work at the Kambalda nickel operations has reached another milestone with the first firing of the portal face in the boxcut at the new Cassini nickel mine.

The firing marks the start of development of the newest high-grade nickel sulphide mine in Australia.

Underground development has also started at the Northern operations.

The Mincor board approved the A$68-million development of the Kambalda project in September this year. Mincor and BHP Nickel West have recently agreed on terms for supply of grid power to the Cassini operations, with the company telling shareholders that the shift to grid power represents a change from the definitive feasibility study, where diesel generation was assumed.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Mincor Resources, tel +61 8 9476 7200 or email mincor@mincor.com.au.