QUEBEC - Montreal-based CANADIAN ROYALTIES has a preliminary economic assessment for its Mequillon deposit. The study indicates that mining this deposit will extend the life of the Nunavik nickel project by nine years. The company already estimated that mining the Mesamax, Expo and Ivakkak deposits will take approximately nine years.
The Mequillon mine would have both an underground and an open pit component to recover 9.2 million tonnes of indicated and inferred resources with an average grade of 0.68% Ni, 0.96% Cu, 0.6 g/t Pt and 2.3 g/t Pd. Mine development costs would be $69 million to create a project with pre-tax IRR of 33% with $8 nickel and $2 copper.
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