Name and Location
SCONI Phase 1 project, North Queensland, Australia.

Client
Metallica Minerals.

Project Description
SCONI Phase 1 is designed to be a commercial standalone project as evidenced by the positive economic results from the prefeasibility study (PFS).

The PFS demonstrated Phase 1 as an economically and technically viable project with considerable upside.

The PFS was based on a high-pressure acid leach processing plant, treating 200 000 t/y of high-grade scandium laterite resource from Metallica’s 100% owned Lucknow deposit.

The project will produce 50 t/y to 65t/y of high-purity (>99.9%) scandia over a 20-year mine life.

The resource will be processed using delivered acid in the initial stages of the operation to construct an acid and power plant after commissioning and ramp-up of the project.

Phase 1 may lead to the development of the much larger Phase 2 brownfield expansion at a later date, subject to economic conditions at that time.

It is envisaged that Phase 2 will process 750 000 t/y.

Value
Capital expenditure, excluding contingency, is estimated at A$247-million.

Duration
The project is expected to take two years to complete.

Latest Developments
Metallica Minerals has increased the mineral resource at the southern deposits of the SCONI project by 19%, following drilling of old waste-rock dumps.

The total southern deposit resource currently stands at about 70.7-million tonnes, at 1.20% nickel equivalent, increasing the project’s total mineral resource to 89.1-million tonnes at 1.15% nickel equivalent, from a previous estimate of 77.9-million tonnes at 1.19% nickel equivalent.

Total measured and indicated resource increased by 2.5% to 65.1-million tonnes, at 1.22% nickel equivalent.

Metallica is trying to lower its overheads, recently announcing several redundancies at the Sconi project, including CEO Gavin Becker. It also deferred the definitive feasibility study of the project to reduce costs.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project has been deferred until market conditions improve.

Contact Details for Project Information
Metallica Minerals, tel +61 7 3249 3000, fax +61 7 3249 3001 or email admin@metallica.com.au.