NICKEL MINING: First Nickel rejigs Lockerby mine plan

ONTARIO – In preparation for the start of commercial production on July 1, 2012, the Lockerby nickel mine plan has been optimized by owner First Nickel of Toronto.

The rejigged plan covers both the mining method and cost data. The new mining plan uses a longitudinal rather than a transverse method to provide operational flexibility with multiple mining headings and varied panel lengths. The need to move than 100,000 tonnes of waste is eliminated by dropping plans to do more than 3,000 metres of lateral develop in waste. Less waste in the materials handling system results in fewer ore-waste changeovers and lower spending on fixed plant maintenance.

First Nickel also updated the Lockerby financial parameters. The net present value (8% pre-tax) is $86.9 million with $28 million needed for capital expenditures over the life of the mine. That life is planned to be 58 months from July 1 this year. The average annual production rate will be 10 million lb of nickel and 7 million lb of copper at an average cash cost of $5.56 per pound of nickel.

Readers should visit FirstNickel.com because the company’s website is both informative and visually appealing.