The scoping study followed the December 2019 pre-feasibility study (PFS) on the TECH Project which identified the production of HPA as a key value-add opportunity for the project.
The scoping study assessed the production of 4N HPA on a standalone basis, using the aluminium hydroxide as a feedstock.
A 25-year operation producing 4,007 tonnes per annum (tpa) of 4N HPA would have a net present valuation (NPV) of $849 million.
HPA study to be combined with TECH Project PFS
The scoping study will be updated to PFS standard and combined with the December 2019 TECH PFS to present the financial metrics of the overall project when producing HPA instead of aluminium hydroxide.
Pure’s managing director John Downie said: “The TECH Project is becoming a one-stop-shop for battery manufacturers.
“Nickel sulphate, cobalt sulphate and HPA are key chemicals required by the battery industry and our potential ability to supply meaningful quantities of all these products will increase our appeal as a supplier to battery manufacturers.
“The HPA market is evolving and the TECH Project has two key advantages against other potential suppliers.
Access to aluminium hydroxide a key advantage
“Firstly, by starting with an advanced intermediate product in the form of aluminium hydroxide, our capital and operating costs are significantly lower.
“Secondly, the TECH Project will be protected from any significant price volatility in the HPA market due to revenue derived from its primary product streams.”
Nickel project acquired for no initial cost outlay
Pure has also acquired the Sewa Bay Nickel Project in Papua New Guinea for up to $150,000 in cash or shares and a 5% trailing royalty.
Auger drilling completed by the vendor in 2015 recorded:
- 1.1 metres at 1.61% Ni from surface
- 1 metre at 1.43% Ni from surface
- 2.4 metres at 1.42% Ni from surface
- 1 metre at 1.41% Ni from surface
- 1.9 metres at 1.4% Ni from surface
- 6.3 meters at 1.12% Ni from surface
- 4.6 meters at 1.11% Ni from surface
Downie commented: “Sewa Bay has the potential to be a low-cost mining operation with nickel laterite mineralisation from surface.
“Whilst our focus remains on importing ore from our ore supply partners in New Caledonia, Sewa Bay provides us with some risk diversification and future optionality at no initial cost outlay.”