NICKEL STUDY: Economics improve at Minago project

MANITOBA - While working on the feasibility study for its 100-% owned Minago nickel project, Toronto-based Victory Nickel has tweaked its financial model and increased the internal rate of return (IRR) to 19.8% (up from 17.7% six months ago) and its net present value to $487.6 million (a gain of $85 million). Undiscounted cash flow will top $1 billion, according to the company.

Victory Nickel recently entered into an agreement to purchase refurbished electrical equipment for the main 230 kV/13.8 kV substation, the main electrical switch room and seven 13.8 kV/600 V unit substations for the process and service centres for the Minago mine site. Early installation of electrical capacity will reduce costs during the construction period. The company also saved 54% by purchasing refurbished equipment rather than new as originally planned.

Mineral resources at the Minago project, as well as the Lynn Lake, Lac Rocher and Mel deposits, are posted at www.VictoryNickel.com.