QUEBEC - Montreal-based CANADIAN ROYALTIES has released a summary of the feasibility study for its Raglan South nickel project in Nunavik. The company says the economics will be robust with a payback of the capital investment in less than three years if the price of nickel is US$6/lb and less than two years at US$10/lb nickel.
The project would need a pre-production capital investment of Cdn$438 million or Cdn$465.7 million including escalation. An open pit and 3,500-t/d concentrator would be built. Ore from the Mesamax and Ivakkak deposits would be blended with that from the Expo deposit for the first four years of the project. Ore from underground at Ivakkak would be blended with Expo material during years five and six. Separate copper and nickel concentrates would be produced.
The Raglan South project has a life of only nine years, based on current reserve estimates. Canadian Royalties has based its study on proven and probable reserves of 11.3 million t grading 0.97% Ni and 1.13% Cu plus cobalt and PGM values.
The company is in talks for the environmental permit and offtake agreements. Permits could be received early in 2008, allowing production to start as soon as the first half of 2010. Target annual production levels are 25.0 million lb of nickel, 38.8 million lb of copper, 14,500 oz of platinum and 78,600 oz of palladium, all in concentrates.
A presentation of the information in the Raglan South feasibility study is available at www.CanadianRoyalties.com in the Projects section.