Canadian Mining Journal

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NICKEL STUDY: PFS pegs Dumont project NPV at $1-B

QUEBEC - Toronto-based Royal Nickel is looking at a net present value for its Dumont nickel project near Amos of US$1 billion (after tax). As the company anticipates pressing forward with the project, it points to low capital commitment, low...



QUEBEC – Toronto-based Royal Nickel is looking at a net present value for its Dumont nickel project near Amos of US$1 billion (after tax). As the company anticipates pressing forward with the project, it points to low capital commitment, low cash costs and a traditional flowsheet. Royal Nickel is projecting a 2015 start-up.

The pre-feasibility study examines staged development. The first phase, 50,000 t/d, carries development cots of US$1.1 billion. The ore output could then be doubled by year five for an additional US$700 million. Average nickel production would be 96 million lb during the initial 19.5 years of operation. Lower grade material would be milled for another 12 years to produce 59 million lb/y of nickel. The Dumont project also has the potential to produce a ferronickel product.

Measured and indicated resources at the Dumont deposit are 1.4 billion tonnes grading 0.27% Ni. The inferred portion is an additional 695 million tonnes at 0.26% Ni.

Details of the PFS are posted at www.RoyalNickel.com in the news release dated Nov. 1, 2011.