Canadian Mining Journal

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NICKEL STUDY: Royal Nickel files revised Dumont PFS

QUEBEC – Toronto-based Royal Nickel has filed a revised preliminary feasibility study for its Dumont nickel project 25 km from Amos. The updated study postulates an after tax net present value of $1.4 billion, up 31% from the PFS filed...



QUEBEC – Toronto-based Royal Nickel has filed a revised preliminary feasibility study for its Dumont nickel project 25 km from Amos. The updated study postulates an after tax net present value of $1.4 billion, up 31% from the PFS filed six months ago. Nickel production will upped 16% to 72 million lb annually, thanks to optimization of the mill flowsheet.

One of the important changes in the new PFS is the inclusion of electric trolley assist for the haul trucks. That translates into a 28% savings in diesel fuel consumption. The initial capital cost will remain at $1.1 billion.

Royal Nickel puts Dumont resources at 1.62 billion tonnes grading 0.27% Ni in the measured and indicated category. The inferred portion is 513 million tonnes at 0.26% Ni. An open pit truck-and-shovel operation is planned. The ore will be processed using flotation and magnetic separation to produce a concentrate grading 29% Ni.

Highlights of the revised PFS are available at RoyalNickel.com in the investor presentation of June 1, 2012.