http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Sun, 25 Feb 2018 12:42:45 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Pacific American prepares for drilling to boost coking coal resources ]]> http://www.proactiveinvestors.com.au/companies/news/189769/pacific-american-prepares-for-drilling-to-boost-coking-coal-resources-189769.html Pacific American Coal Ltd (ASX:PAK) is well advanced with preparations for 2018 drilling aimed at defining reserves and expanding resources at the Elko Coking Coal Project in Canada.

The company has completed pre-drilling environmental studies while most approvals for the program have been received.

Pacific American is planning circa 8,500 metres of drilling.

257.5 million tonnes resource

The Elko project contains a 257.5 million tonnes resource and is in the East Kootenay Coal Basin of British Columbia.

Pacific American intends to replicate an exploration program planned for 2017 but which was suspended due to significant wildfires in the province, which prevented access to the site.

Since then the company has completed all environmental studies it was been requested to complete as part of the approval process for its Notice of Work.

READ: Pacific American Coal appoints Mark Sykes to the board

The final piece of environmental work required is the GAP Analysis, which is being prepared.

During Canada’s spring the company intends to complete stage II work of the fish and archaeological studies.

It will also carry out field work associated with desktop reviews and recommendations of the GAP Analysis.

The company continues to work closely with the Ministry of Energy, Mines and Petroleum Resources and various other government departments.

It sees no significant hurdles in achieving the Notice of Work approval before the 2018 exploration window during the warmer months.

Focus on commercial aspects

In addition to the environmental and permitting process, the company continues to focus on commercial aspects of the project.

Elko has projected low capital costs and infrastructure advantages over other coal projects in the region.

The project has the capacity of being a 1-2 million tonnes per annum operation during initial years of operation based on the resource containing an area suitable to a low strip ratio open cut mine.

There is then the ability to expand production capacity over time as an underground operation is established.

Elko is within 20 kilometres of coal rail infrastructure and is at the southern end of the East Kootenay Coal Basin.

Rail cost advantage

This makes it the closest coal project in the basin to coal ports in Vancouver with a circa $2 per tonne rail cost advantage over projects at the northern end of the basin.

A project study report delivered by Palaris Australia in May 2017 identified that the project did not require significant capital expenditure to deliver initial shipments of coal to market.

Contract mining planned

As such, Pacific American plans a contract mining operation minimising the start‐up capital to major cost items such as site access, coal handling and processing facilities and rail load-out.

The Palaris report indicates that Elko is expected to be at the lower end of capital intensity and would compare favourably with other Canadian projects.

There is a strong product mix at Elko, including in demand HCC and premium quality PCI.

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Wed, 10 Jan 2018 14:04:00 +1100 http://www.proactiveinvestors.com.au/companies/news/189769/pacific-american-prepares-for-drilling-to-boost-coking-coal-resources-189769.html
<![CDATA[News - Pacific American Coal appoints Mark Sykes to the board ]]> http://www.proactiveinvestors.com.au/companies/news/189359/pacific-american-coal-appoints-mark-sykes-to-the-board-189359.html Pacific American Coal Ltd (ASX:PAK), a North American focused coal group has strengthened its board with the appointment of Mark Sykes as an executive director.

He replaces Paul Chappell who has resigned from the board after nearly 3 years as a non-executive director.

Sykes has been Pacific American Coal’s chief executive officer since 2013, and he has extensive industry experience.

Appointment timely as Pacific American moves towards exploration at Elko

Sykes also has an intimate knowledge of the group’s Elko Coking Coal Project located in British Columbia, Canada where the company is poised to commence exploration.

The Elko hard coking coal asset is 100% owned by Pacific American and includes a total of six coal leases in the East Kootenay Coal Field.

The company also has tenements in application in low volatile bituminous regions of the Arkoma coal basin in Oklahoma.

Sykes to assist in evaluating new opportunities

Geoff Hill, chairman of Pacific American Coal, highlighted the benefits of Sykes’ experience in evaluating new opportunities. 

This has emerged as an increasingly important factor following the strengthening of the company's balance sheet in October.

READ: Pacific American Coal swells cash position after recovering investment ]]>
Tue, 02 Jan 2018 11:45:00 +1100 http://www.proactiveinvestors.com.au/companies/news/189359/pacific-american-coal-appoints-mark-sykes-to-the-board-189359.html
<![CDATA[News - Pacific American Coal swells cash position after recovering investment ]]> http://www.proactiveinvestors.com.au/companies/news/185840/pacific-american-coal-swells-cash-position-after-recovering-investment-185840.html Pacific American Coal Ltd (ASX:PAK) has received US$408,580 from the early and final payment from GCI, and therefore recovered 100% of its investment.

The company now has more than $4.3 million in cash.

As previously advised, the company entered into an agreement to sell its 30% equity investment in GCI, with repayments scheduled over a 24 month period commencing 15 January 2017.

The proceeds from the divestment have been finalised 15 months early than scheduled.

Geoff Hill, chairman, commented: "PAK would like to thank the team at GCI and specifically CEO Craig Jackson for all his work over the years.

"With the recent positive change in US Government coal exploration policy,

"PAK looks forward to working in partnership with the team at GCI on other opportunities in the Arkoma basin of North America."

Next steps

PAK’s strengthened cash position will enable the company to pursue its strategic objectives, which include:

- Completion of field studies and approval process at the 100% owned Elko Coking Coal Project;
- Advancing its other exploration assets in North America; and
- Reviewing other accretive investments in North America and Australia.

In addition to the funds having now been received in full, the board is pleased to retain a positive on‐going relationship with GCI, enabling the company to collaboratively work with GCI to assess opportunities in Oklahoma which better match PAK’s strategy.

 

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Thu, 19 Oct 2017 13:40:00 +1100 http://www.proactiveinvestors.com.au/companies/news/185840/pacific-american-coal-swells-cash-position-after-recovering-investment-185840.html
<![CDATA[News - Pacific American Coal eyes accretive opportunities along with flagship coal project ]]> http://www.proactiveinvestors.com.au/companies/news/184796/pacific-american-coal-eyes-accretive-opportunities-along-with-flagship-coal-project-184796.html Pacific American Coal Ltd (ASX:PAK) is continuing to prioritise the development of its high value coking coal asset in Canada whilst assessing other accretive investment opportunities.

The company has been working on completing a number of pre‐drilling tasks in preparation for its exploration program at the Elko coking coal project in British Columbia (B.C.), Canada.

However, due to the unprecedented wildfire season being experienced in B.C., the company could not complete the necessary tasks required to obtain drilling permits.

Whilst there is no immediate danger to any company personnel or equipment, there are restrictions in accessing the site.

As a result, Pacific has taken the decision to suspend its 2017 drilling program.

The company is planning to send its personnel to the ground to complete the required permitting field work as soon as conditions permit.

Following the divestment of its non‐core assets, Pacific is well placed with significant assets in B.C., Canada and circa $4 million in cash reserves.

It is worth noting that the company has a 257 million tonne coking coal resource at Elko.

Pacific recently renewed its exploration license covering the Elko and Hazell projects for a further twelve months.

The company is also planning to review a number of potential investment opportunities in North America and Australia.

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Fri, 29 Sep 2017 13:08:00 +1000 http://www.proactiveinvestors.com.au/companies/news/184796/pacific-american-coal-eyes-accretive-opportunities-along-with-flagship-coal-project-184796.html
<![CDATA[News - Pacific American Coal to be led by coal industry expert ]]> http://www.proactiveinvestors.com.au/companies/news/171995/pacific-american-coal-to-be-led-by-coal-industry-expert-171995.html He will commence on 1 February 2017.

Lochtenberg has substantial global and Australian coal industry experience, including as former co-head of Glencore International AG's worldwide coal division.

He was also executive chairman and founding managing director of Cockatoo Coal, now Baralaba Coal Company (ASX:BCL), taking it from grass roots explorer to mainstream metallurgical coal producer.

Lochtenberg’s experience in the coal industry will be valuable for Pacific American as it moves quickly to advance the Elko project.

The project contains a JORC 2012 resource of 257.5 million tonnes of coal in an area of 3,571 hectares.

The company has recently raised $2.3 million to fund a mid-year drilling program and a scoping study on the development.

This will provide Pacific American with the initial mine concept design and provisional capital cost estimates.

The company’s shares were last trading 9.5% higher intra-day, at $0.115.

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Mon, 23 Jan 2017 16:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/171995/pacific-american-coal-to-be-led-by-coal-industry-expert-171995.html
<![CDATA[News - Pacific American Coal raises funds to progress Canadian coking coal project ]]> http://www.proactiveinvestors.com.au/companies/news/170352/pacific-american-coal-raises-funds-to-progress-canadian-coking-coal-project-170352.html The shortfall of $330,000 is being placed by the underwriter Far East Capital, to raise a total of $1.78 million.

Given the strong level of demand for the entitlement offer, Pacific American is planning to raise another $220,000 from a top up placement.

Last month, the company engaged Palaris Australia to deliver a scoping study for its Elko Coking Coal Project in the East Kootenay Coal Basin of British Columbia, Canada.

The project contains a JORC 2012 resource of 257.5 million tonnes of coal in an area of 3,571 hectares.

The scoping study is scheduled to be delivered in Q1 CY2017 and will provide a preliminary assessment of the technical and commercial viability of the project.

It is worth noting that during the period from 1 July 2016 to 28 October 2016, spot coking coal price increased 274% from US$93 to US$255 per tonne.

The Elko Coking Coal Project is positioned within 20 kilometres of coal rail infrastructure at the southern base of the East Kootenay Coal Basin.

This makes it the closest project in the area to the port of Vancouver.

Pacific American is focusing on marketing Elko coking coal into the Asian region due to the suitability and favourable shipping location.

The company’s share price has increased by about 145% since the beginning of 2016, last trading at $0.13.

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Tue, 13 Dec 2016 08:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170352/pacific-american-coal-raises-funds-to-progress-canadian-coking-coal-project-170352.html
<![CDATA[News - Pacific American Coal Ltd triggers investment in graphene coatings developer ]]> http://www.proactiveinvestors.com.au/companies/news/155876/pacific-american-coal-ltd-triggers-investment-in-graphene-coatings-developer-69018.html Pacific American Coal Ltd's (ASX:PAK) has completed the acquisition of a 20% stake in Imagine Intelligent Materials, an Australian developer of graphene-based coatings for industrial textiles and fibres.

Graphene is a two-dimensional “super-material” offering extremely high electrical and thermal conductivity, amongst other features.

Imagine IM focuses on graphene-based industrial applications, and is the first in the world to develop conductive geomaterials using functionalized graphene.

Imagine IM’s imgne™ X3 conductive solution will soon be used in the development of a conductive geotextile that can be used to locate and remedy leaks in landfill and mining construction at an economic cost.

It is constructing Australia’s first commercial graphene plant of a capacity of 10 tonnes.

Late last month, Pacific American placed 33.2 million shares at $0.048 per share, raising $1.6 million (before costs). The funds will be applied to the first phase of the Imagine acquisition.

The company is scheduled to acquire another 20% from Imagine IM’s existing shareholders by 30th June 2016.

Pacific American will continue to develop its Elko coking coal project in British Columbia, Canada, its flagship project in North American coal.

The Elko project, which has a maiden resource of 257.5 million tonnes of coal, will eventually target sales to export markets, primarily eastern Asia.

Pacific American had cash of $1.05 million as at end March 2016.

Shares in Pacific American are up 137% over the past year.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 03 Jun 2016 11:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/155876/pacific-american-coal-ltd-triggers-investment-in-graphene-coatings-developer-69018.html
<![CDATA[News - Pacific American Coal Ltd sets sail for graphene sector ]]> http://www.proactiveinvestors.com.au/companies/news/155873/pacific-american-coal-ltd-sets-sail-for-graphene-sector-67629.html Pacific American Coal Ltd (ASX:PAK) will retain its Elko Coking Coal Project but acquire a 20% stake in Imagine Intelligent Materials Pty Ltd, an Australian developer of graphene-based coatings for industrial textiles and fibres.

PAK will initially acquire 20% of the issued capital of Imagine IM in consideration for a cash payment of $1.25 million initially.

PAK will seek to raise $1.58 million from sophisticated and professional investors by an underwritten cash placement of 33 million new shares in PAK at an issue price of $0.048.

Imagine IM is a company that develops commercial applications for graphene and associated advanced carbon based materials.

The Elko coking coal project in British Columbia has a 254 million tonne resource of coal in the measured, indicated and inferred categories.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 22 Mar 2016 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/155873/pacific-american-coal-ltd-sets-sail-for-graphene-sector-67629.html
<![CDATA[News - Pacific American Coal defines resource in Canada with mine potential ]]> http://www.proactiveinvestors.com.au/companies/news/155870/pacific-american-coal-defines-resource-in-canada-with-mine-potential-65376.html Pacific American Coal (ASX:PAK) has confirmed potential for an open pit starter mine and a broader underground operation at its Elko project in Canada after defining a maiden resource of 257.5 million tonnes of coal.

The resource confirms the quality of Elko material, with three seams identified as having hard coking coal characteristics and five seams ranging in thickness from 2.57 metres to 5 metres.

The site is considered to have additional resource potential and planning is underway for another drilling program that will target coal quality and validate coal specifications across the Elko licences.

The Elko resource statement delivered on Pacific American’s exploration target 224-336 million tonnes of coking coal while underlining the potential identified in historical work at the site, including the discovery of seven coal seams with mineable thickness in 1973.

The range of seam thickness confirmed by Pacific America of 2.57 to 5 metres is capable of supporting underground mining methods.

Raw block modelling, however, has also indicated the potential for an initial small-scale open cut operation.

This opportunity would allow for early cash flow that would facilitate the pre-development of a larger scale underground operation. The underground operation would target the high quality coking coal seams.

The estimated open cut resources with a strip ratio of less than 5 bank cubic metres to 1 tonne of coal is equivalent to 13.5 million tonnes.

These early open cut workings would provide geotechnical stability above the underground portals in addition to offering a level footprint that would support locating the required mine site infrastructure.

Coal quality at Elko ranges from containing hard coking coal specifications to semi-hard and metallurgical pulverised coal injection (PCI) coal. 


Project strengths

Earlier this year, Elko was identified as the highest priority exploration asset in the Pan American portfolio due to a number of positive project attributes including five outcropping coal seams located close to transport infrastructure.

Historical work at Elko has resulted in six adits being excavated into the main coal seams and four diamond drill hole locations being identified.

A Japanese-lead feasibility study has demonstrated the potential of a 1-million-tonnes-per-annum underground operation within 5 kilometres of Elko.

The site is within 20 kilometres by public road to the rail network servicing the export bulk port at Vancouver.

Crucial support services are accessible by these roads at the nearby township of Fernie.

Exploration in the Elko area has been regularly performed over the past 50 years, with the main period of activity in the southern region of the East Kootenay Coal Basin being during the mid-1960s to the early 1980s.

A number of Coal Assessment Reports confirmed the presence of high-quality coal as reported by international companies including a former subsidiary of Kaiser Steel, BC Coal Ltd, and a subsidiary of the Japanese trading house Mitsui, Mitsui Coal and Shell Canada’s subsidiary, Crows Nest Resources Limited.


Preparations and engagements

Definition of the maiden resource at Elko followed a program of exploration, engagement and consulting, which included initial relations with key stakeholders and partners.

These groups included the First Nation Groups, First Nation field assistants, industry consultants and local land holders.

Pacific American has mapped about 8 kilometres of coal outcrops, validated adits and identified five coal seams along strike of existing licences on the 3,571-hectare property.


Next steps

The next phase of exploration at Elko will focus on enhancing the coal quality and geotechnical databases through a targeted drilling program.

Planning will address the permitting requirements along with establishing a detailed budget to achieve Pacific American’s objective.

Prior to commencing the drilling program, the company will seek additional sources of funding to assist in delivering a comprehensive exploration drilling program.

A coal quality report is also planned for Q1 2016.


Analysis

The resource definition at Elko is significant because it confirms the potential of the project to develop into an operating mine via an early-stage open pit and eventual underground production at the higher-quality seams.

An early open pit scenario would allow early cash flow and facilitate pre-development of the larger mine.

The resource also reinforces the significant amount of historical work conducted at the site in the past several decades, most of which points to a high-quality coal endowment with important access to infrastructure.

The resource definition process at Elko has allowed Pacific American to establish initial relations with critical long-term stakeholders, including the indigenous First Nations peoples.

Price catalysis for the company are evident in a number of upcoming milestones that will build on the resource statement, including an upcoming coal quality study, additional drilling and permitting work.

Pacific American’s staged and deliberate approach to collating information on the site represents a proven strategy for making a large discovery.

The company is implementing a structured plan that will efficiently and effectively manage the company while providing an annual cost saving of A$250,000 per year.


Proactive Investors Australia is the market leader in producing news, articles and research reports on emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 02 Nov 2015 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/155870/pacific-american-coal-defines-resource-in-canada-with-mine-potential-65376.html
<![CDATA[News - Pacific American Coal sets up resource definition in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/155868/pacific-american-coal-sets-up-resource-definition-in-canada-65298.html Pacific American Coal (ASX:PAK) has achieved a major milestone in proving up a tier-1 Canadian coking coal asset with successful completion of exploration work at the Elko project in British Columbia.
 
Pacific American has mapped about 8 kilometres of coal outcrops, validated adits and identified five coal seams along strike of existing licences on the 3,571-hectare property.

Along with work locating minesite infrastructure, defining access routes and engaging with indigenous First Nations representatives, this effort has set the stage for more advanced developments such as geological modelling and the declaration of an inferred resource later this year.

Establishment of the resource is on track for Q4 2015.

This is scheduled to be followed in Q1 2016 by a coal quality report and development of exploration plans for the next stage of drilling.


High potential

Elko has the largest exploration target in Pacific American’s portfolio at 224 to 336 million tonnes of coking coal.

A comparison of competitor resource statements holding coal licenses in the Kootenay
Basin indicates that Elko would be the second largest resource in the basin even if the project confirms a resource tonnage at the lower end of expectations.

A Japanese-lead feasibility study has demonstrated the potential of a 1-million-tonnes-per-annum underground operation within 5 kilometres of Elko.

The site is within 20 kilometres by public road to the rail network servicing the export bulk port at Vancouver.


Historical exploration

Exploration in the Elko area has been regularly performed over the past 50 years. Activity has been carried out by a number of companies, including the Japanese trading company Mitsui in the 1960s and Cline Mining Corporation (TSE:CMK) in 2005.

In 1973, BC Coal dug seven adits in coal outcrops along the western face of the region’s Flathead Ridge area. The company identified at least seven coal seams with mineable thickness and quality within the Elko boundary.

Elko is the only granted coal licence containing multiple outcropping coal seams along the southern boundary of the East Kootenay Coal Basin.


Analysis

Completion of initial exploration work at Elko is an important step in adding value to the project as it paves the way for the rapid definition of a major resource and more advanced mine planning.

This scenario sets up Pacific American for increased newsflow in the medium term, which could result in significant price catalysts for the company if Elko confirms the potential of its encouraging historical exploration work.

The identification of geological structures, adits and exploration holes has set the stage for additional drilling and expansion after the maiden resource is established later this year.

The latest exploration achievements also helped set up critical long-term relationships with the indigenous First Nations peoples.

The significant amount of historical exploration at Elko over 50 years is a strong indicator of the widely regarded prospectivity of this ground. Pacifica American’s staged and deliberate approach to collating information on the site represents a proven strategy for making a large discovery.

Pacific American is implementing a structured plan that will efficiently and effectively manage the company while providing an annual cost saving of A$250,000 per year.


Proactive Investors Australia is the market leader in producing news, articles and research reports on emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 27 Oct 2015 11:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/155868/pacific-american-coal-sets-up-resource-definition-in-canada-65298.html
<![CDATA[News - Metals Finance in halt pending "significant corporate transaction" ]]> http://www.proactiveinvestors.com.au/companies/news/155864/metals-finance-in-halt-pending-significant-corporate-transaction-53362.html Metals Finance's (ASX:MFC) shares have been placed in a trading halt to allow time to prepare an announcement in relation to a "significant corporate transaction".

The trading halt is to last until the earlier of the company releasing an announcement or the commencement of trade on 6th March 2014.

In the most recent quarterly, the company stated that it had reviewed several alternate investment opportunities and conducted the appropriate due diligence.

Given the recent spate of microcap stocks moving into the technology sector, there is speculation that the transaction may be related to a tech-related acquisition.

MFC is currently a major shareholder in Bass Metals (ASX:BSM), and is currently capped at around $1.5 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 04 Mar 2014 12:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/155864/metals-finance-in-halt-pending-significant-corporate-transaction-53362.html
<![CDATA[News - Metals Finance to acquire north Queensland nickel project ]]> http://www.proactiveinvestors.com.au/companies/news/155861/metals-finance-to-acquire-north-queensland-nickel-project-43115.html Metals Finance (ASX: MFC) has inked an option agreement to acquire 100% of the Lucky Break Nickel Project from Metallica Minerals (ASX: MLM) for a cash consideration of $1 million.

The project has a 10 year mine life with a net present value of $22 million and an internal rate of return of 40% at a discount rate of 12.5%, on the basis of the assumptions incorporated into the previously completed Definitive Feasibility Study.

Lucky Break will produce around 670 tonnes of nickel cathode per annum with annual revenue of around $18 million.

The option agreement allows Metals Finance subsidiary Nickel Developments to exercise the option to acquire the project by 28 February 2014.


Lucky Break

The Lucky Break Project comprises two discrete ore bodies – Dingo Dam (ML10324) and Circular Laterite (ML10332) – with mineralisation that crops out at surface.

The two mining leases are contiguous and are held by NORNICO Pty Ltd, a wholly owned subsidiary of Metallica Minerals.

The option agreement includes both mining leases that are on 100% freehold land.


Extensive testwork

Nickel Developments has undertaken extensive testwork at Lucky Break including laboratory analysis along with the construction and operation of a pilot plant facility.

The company has designed and implemented a hydrometallurgical flowsheet that can economically process nickel laterite ores – the flowsheet being a combination of atmospheric leaching, Ion Exchange technology and electrowinning.

This has the capability to recover nickel from laterite ore to produce an LME grade nickel cathode product.

Research and development by Nickel Developments in the area of nickel laterite treatment has demonstrated the ability to deploy a low operating cost and low capital intensity project.

The option agreement for Lucky Break is a step forward as Nickel Developments seeks to attract project funding to commence construction and production at the project.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 10 May 2013 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/155861/metals-finance-to-acquire-north-queensland-nickel-project-43115.html
<![CDATA[News - Metals Finance delivers improved economics for Barnes Hill nickel laterite project ]]> http://www.proactiveinvestors.com.au/companies/news/155859/metals-finance-delivers-improved-economics-for-barnes-hill-nickel-laterite-project-24925.html Metals Finance (ASX: MFC) has improved the economic and development potential at its Barnes Hill nickel laterite project in Tasmania with a Definitive Feasibility Study update showing an internal rate of return of 47% and doubling of annual throughput to 500,000 tonnes per annum.

The indicated net present value for the project (15% discount rate) is in excess of $100 million, with a potential capital payback within two years.

While the final study will not be ready until July 2012 and significant further work remains, the update indicates that the projected capital cost of Barnes Hill is $98 million at the expanded throughput, and that total revenues of more than $1.1 billion could be generated over its full life.

Financial modelling now indicates a potential operating cost at Barnes Hill of about US$6.90 per pound of nickel.

The initial study, which was released last August, found that economy of scale would be required for Barnes Hill to achieve a robust return on capital and that the financial outcome could be significantly improved if the project is doubled in size from the originally modelled 250,000 tonnes per annum.

Importantly, sufficient resources have now been defined to sustain a 500,000 tonne per annum operation.

The update was based on a novel approach to the treatment of nickel laterite ores developed for Metal Finance’s Lucky Break project in Queensland.

It provides an opportunity for a substantial decrease in operating costs by using Dow Chemical’s ion exchange technology to avoid iron removal prior to recovering nickel from leach solutions.

It also offers a significant increase in product value through the production of nickel metal rather than a lower value intermediate product.

Barnes Hill is a joint venture between Metals Finance and Proto Resources & Investments (ASX: PRW), the owner of the tenements.

Metals Finance can earn a 50% operating interest by completing flow sheet designs, engineering and feasibility studies and bringing the project into production.

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Mon, 06 Feb 2012 13:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/155859/metals-finance-delivers-improved-economics-for-barnes-hill-nickel-laterite-project-24925.html