CaNickel Mining (TSXV:CML) has released a summary of the results of a current independent preliminary economic assessment (PEA) and mineral resource estimate (MRE) on the company's Bucko Lake mine located 110 km southwest of Thompson, Man., near the Town of Wabowden.
The PEA outlines a mine life of 13 years with average annual production of 7.8 million lb. of nickel at average cash costs and all-in sustaining costs (AISC) per pound of nickel of $6.57 and $8.68, respectively. Additional, the PEA estimates a cumulative production of 101 million lb. of payable nickel over the course of its life.
According to the MRE, Bucko Lake contains 5.7 million measured and indicated tonnes grading 1.24% nickel (using a 0.7% nickel cut-off grade) and 0.11% copper for contained metal content of 156.3 million lb. of nickel and 13.4 million lb. of copper.
Additional inferred resources total 10.6 million tonnes grading 1.18% nickel (using a 0.7% nickel cut-off grade) and 0.13% copper for contained metal content of 275.6 million lb. of nickel and 31.2 million lb. of copper.
Using a nickel price assumption of $13.18 per lb., the project generates pre-tax net present value using a discount rate of 6% (NPV6%) of $205 million and internal rate of return (IRR) of 32%; and after-tax NPV6% of $169 million and IRR of 30%.
Initial capital costs of $87 million (including $11 million contingency) will be paid back in 3.3 years.
"The project represents one of the more advanced, higher grade nickel sulphide projects in North America and benefits from existing infrastructure,” said Kevin Zhu, CEO of CaNickel.
“With demand and prices now surging for Class 1 nickel sulphide on the back of increased demand in electric vehicle batteries, production at the Bucko Lake mine appears to be economically feasible once again."
To learn more, visit www.CaNickel.com.
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