MANITOBA – Toronto-based Victory Nickel said that project optimization resulted in improved economics for its Minago nickel project in the Thompson Nickel Belt. The base case internal rate of return (IRR) has increased to 22.9% from the original estimate of 17.7% and the net present value (NPV) at a 6% discount rate has risen by $317.9 million, or 79%, to $720.5 million, compared with the feasibility study results. Undiscounted cash flow has increased to greater than $1.5 billion.
The company says the increase was made possible by a 24% boost in pit constrained measured and indicated resources. They now stand at 31.0 million tonnes that grade 0.443% NiS containing 302.3 million lb of NiS. There is also an inferred resources of 200,000 tonnes grading 0.380% NiS.
Victory Nickel is proceeding with financing initiatives, permitting, sourcing equipment, and metallurgical tests. Additional information is available at www.VictoryNickel.ca.