NICKEL STUDY – McWatters feasibility outlines short mine life

ONTARIO - The recent feasibility study prepared for the McWatters nickel property outlines a mine life of only 28 m...
ONTARIO - The recent feasibility study prepared for the McWatters nickel property outlines a mine life of only 28 months, says owner LIBERTY MINES of Edmonton. Development would take 11 months, reaching pre-production ore in the sixth month. Full production of 1,200 t/d will be reached in month 12. Month one of the schedule commenced in January 2008.

Using a nickel price of US$12.50/lb, the study gives the McWatters project a NPV of $42.6 million and an IRR of 385%. A diluted minable reserve of 596,797 tonnes averaging 0.92% Ni and containing 9.6 million lb of nickel has been identified so far.

A pre-production capital expenditure of $19 million will cover underground development, equipment and surface infrastructure. Ore will be treated at Liberty's nearby Redstone mill. Total mine operating costs are $40/tonne. On a per-pound-of-nickel-produced basis, the average operating costs will be $2.52 and total cost including smelting charges will be $5.56.

Visit www.LibertyMines.com for more detailed information.

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