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NICKEL-COPPER STUDY: Lockerby Depth probable reserves hit 1.84M tonnes

ONTARIO FIRST NICKEL of Toronto has released the results of its latest 43-101 report and pre-feasibility study of...


ONTARIO FIRST NICKEL of Toronto has released the results of its latest 43-101 report and pre-feasibility study of the Lockerby Depth zone near Sudbury. The study estimates there is a probable mineral reserve of 1.84 million t grading 1.69% Ni, 1.16% Cu and 0.06% Co. The report was prepared by GENIVAR LP of Quebec City, Quebec.

The project will need a total investment of $86.0 million, $52.2 million of which will be spent during preproduction. That investment will have an estimated 69.3% internal rate of return (IRR). Annual production will be 46 million lb of nickel, 37 million lb of copper and 900,000 lb of cobalt. Unit cash operating costs net of byproduct credits are estimated at US$6.08/lb of nickel over the life of the project. Mine operating costs are estimated to average $130/t.

Mining the reserves of the Lockerby Depth project would take 5.2 years, including 1.5 years of preproduction and 3.7 years of development and production at a full production rate of 1,200 t/d. The mining method of choice is longhole. The critical components of the capital plan that will increase output and reduce unit costs are the development program, replacing of the haulage fleet with electric trucks and optimized use of high speed personnel carriers. The plan now needs to be taken to feasibility level and formalize the start dates, according to First Nickel.

A long section of the Lockerby Depth zone is posted at www.FirstNickel.com.


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