GME Resources Ltd (ASX:GME) has completed the pre-feasibility study for its NiWest Nickel-Cobalt Project in Western Australia, confirming a technically and financially robust long-life operation.
The project will produce high-purity nickel and cobalt sulphate products, which would be delivered into the rapidly growing lithium-ion battery raw material markets.
Open pit with 27-year life
NiWest’s maiden ore reserve estimate is 64.9 million tonnes at 0.91% nickel and 0.06% cobalt, containing 592,000 tonnes nickel and 38,000 tonnes cobalt.
Average head grades for the first 15 years of operation will be 1.05% nickel and 0.07% cobalt.
Mining will be through a conventional open pit at a low projected strip ratio of 2:1.
The processing route will involve heap leaching followed by direct solvent extraction to produce low-cost nickel and cobalt sulphate products.
Nameplate processing capacity will be 2.4 million tonnes per annum, with projected steady-state nickel and cobalt recoveries of 79% and 85%, respectively.
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GME managing director Jamie Sullivan said the company had made outstanding progress in delineating an attractive development pathway for the project.
He said: “The PFS has confirmed the technical and financial merits of the development of a stand-alone processing facility to treat the NiWest deposits.
“The chosen processing route for NiWest adopts commercially proven, lower-risk, lower-capital intensity heap leaching, coupled with highly efficient direct solvent extraction.
“The elevated technical and economic risks associated with high pressure acid leaching and atmospheric leaching have been consciously avoided.
“The net result is forecast low-cost production of high-purity nickel and cobalt sulphates.”
Globally attractive capital intensity
GME anticipates a project construction period of 24 months from the final investment decision and a forecast commissioning and plant ramp-up phase of around 20 months.
The PFS determined an ungeared post-tax net present value of $791 million and internal rate of return of 16.2%.
The forecast pre-production capital expenditure is $966 million, representing a globally attractive pre-production capital intensity of under US$20 per pound of average annual nickel production.
Sullivan said: “Over an initial operating life of approximately 27 years the NiWest project is expected to produce 456kt of nickel and over 31kt of cobalt at a forecast net cash operating cost of around US$3.20/lb.
Partnership engagement prior to DFS
GME intends to engage with potential strategic partners/offtake parties prior to commencing a definitive feasibility study.
Concurrent activities include delineation of planned DFS scope and workstreams, deeper end-market evolution analysis, assessment of value engineering opportunities and the commencement of environmental study work.