Name of the Project
NiWest nickel/cobalt project.

Location
Adjacent to Glencore’s Murrin Murrin operation in the North Eastern goldfields of Western Australia.

Client
GME Resources.

Project Description
NiWest has a maiden ore reserve of 64.9-million tonnes grading 0.91% nickel and 0.06% cobalt.

The prefeasibility study (PFS) has confirmed the technical and financial robustness of a long-life operation directly producing high-purity nickel and cobalt sulphate products to be delivered into the forecast rapid growth of lithium-ion battery raw material markets.

The PFS proposes conventional openpit mining at a low strip ratio of 2:1. Envisaged is 27-year mining operation with nameplate ore throughput of 2.4-million tonnes a year, resulting in total production of 456 000 t nickel (in nickel sulphate) and 31 400 t cobalt (in cobalt sulphate). Projected steady-state nickel and cobalt recoveries are estimated at 79% and 85% respectively.

Average production over the first 15 years is expected to be 19 200 t/y nickel and 1 400 t/y cobalt.

The processing route selected is heap leaching followed by neutralisation, impurity removal and direct solvent extraction and crystallisation to produce nickel and cobalt sulphate products.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax ungeared net present value, at an 8% discount rate, of A$1.39-billion and an internal rate of return of 21.1%, with a payback of 4.4 years.

Value
Preproduction capital expenditure is estimated at A$966-million.

Duration
Construction is expected to take 24 months from final investment decision, with the forecast commissioning and plant ramp-up phase taking about 20 months.

Latest Developments
GME intends to undertake a wider and more advanced period of engagement with a potential strategic partner and/or offtake parties before starting a definitive feasibility study on the NiWest project.

This process is targeted at a comprehensive and robust assessment of the broad range of potential ownership, development and funding structures currently available to GME and the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
GME Resources, tel +61 8 9336 3388, fax +61 8 9315 5475 or email enquiries@gmeresources.com.au.