Logging core from the Dumont nickel-cobalt deposit in Quebec. (Image: RNC Minerals)
QUEBEC – RNC Minerals of Toronto is undertaking work this year so that it can make a production decision on its Dumont nickel-cobalt project near Amos in 2019. The deposit contains the second largest nickel reserve and the eighth largest cobalt reserve of any project in the world, according to the company.
RNC president and CEO Mark Selby said, “Dumont is the only deposit of this scale that is not currently in operation and not owned by a major mining … Given market concern regarding future cobalt and nickel supply for electric vehicles, and nickel prices at the $12,000-$13,000/t ($5.50-$6/lb) level, RNC believes it is well positioned to significantly advance Dumont in 2018.”
A feasibility study done for Dumont outlines a conventional open pit and flotation concentrator with a 33-year life, and the potential for expansion. Initial annual production will be 73 million lb. of nickel and 2.3 million lb. of cobalt contained in concentrates. Output would expand in year five to 113 million lb. of nickel and 4.3 million lb. of cobalt. At 29% nickel, the concentrate produced would be the world’s highest grade.
The Dumont deposit has proven and probable reserves of 1.18 billion tonnes of ore grading 0.27% nickel. The measured and indicated resource is 1.67 billion tonnes at 0.27% nickel, and the inferred resource is 499.8 million tonnes grading 0.26% nickel.
RNC currently has a 50% interest in the Dumont joint venture (with Waterton) that owns Dumont. The project has an after tax net present value of $1.14 billion and an internal rate of return of 15.2%.
Complete details about The Dumont project are available at www.RNCminerals.com.