FREE ARTICLE PREVIEW: You are enjoying a free sample of exclusive
subscriber content. There is a limit of three free articles per week.

TABLE OF CONTENTS Aug 1 - 7, 2011 Volume 97 Number 24 - 0 comments

Anfield gets hard numbers for Mayaniquel project

TEXT SIZE bigger text smaller text
Vancouver 2011-08-01

Two years after making a bet on Guatemalan nickel laterite, Anfield Nickel (ANF-V) has some hard numbers regarding the wisdom of the venture with its first preliminary economic assessment on the Mayaniquel project.

The study looks at a strip mining operation, with a 0.35-to-1 ratio, delivering 3,600 tonnes of lateritic ore to a plant for 30 years. The end result would be a mine producing 20,000 tonnes of nickel a year, within 83,000 tonnes of ferronickel.

The process would involve separating 19% of the material that would go straight to a processing plant, with the rest rerouted to an upgrading plant. The rerouted material would then be separated into lower- and higher-grade nickel, with the low grade rejected. The overall feed to the processing plant would come in at 1.68% nickel.

Later processing would involve drying and calcining the material with coal in a rotary kiln, and feeding it into an 80-megawatt furnace. Much of the accessible resource for a laterite deposit is in the saprolite, which does away with the need for a more complex high-pressure acid leach system.

But the infrastructure and electricity demands are not cheap. The study estimates capital costs of US$1.23 billion, plus sustaining capital costs of US$200 million, with a payback of just over five years. The cost per lb. nickel would be US$3.14, after a 19¢ contained iron credit.

That works out to a net present value of US$606 million at an 8% discount rate, or US$337 million with a 10% discount, while the internal rate of return comes in at 14.1%. Anfield used a long-term nickel price of US$8.25 per lb. The current price is around US$10.50.

The study is based on the Sechol and Tres Juanes deposits. An earlier report estimated that the saprolite and transition zones has 17.2 million indicated tonnes at 1.62% nickel and 23.3 million inferred tonnes at 1.44% nickel, while the lower-grade limonite zone has 7.5 million indicated tonnes at 1.2% nickel and 7 million inferred tonnes at 1.17% nickel. The company notes that the two deposits make up 63% of Anfield's indicated resources and 52% of the inferred resources, above a 1% nickel cut-off, at its Mayaniquel project.

The company was started by Ross Beaty, David Strang and Marshall Koval following their earlier success at Lumina Copper. Anfield snagged the 800-sq.-km property on Lake Izabal from BHP Billiton (BHP-N) in May 2009 for US$2.5 million, and a 1.5% net smelter return royalty, after the global giant largely pulled out of the sector.

Guatemala has a presidential election coming up in September, but Anfield president and CEO Koval said in a conference call that the heads of the two leading parties were both pro-development, and he doesn't anticipate any problems with the upcoming election.

Anfield's share price rose 45¢ over two days, closing at $4.90 the day after the results were released. The company has a 52-week share price range between $2.89 and $5. Anfield has 38 million shares out, with Lumina Capital holding about 35%.



© 1915 - 2014 The Northern Miner. All Rights Reserved.

Related News
U.S. markets end in positive territory, June 30-July 3
Canadian diamond exploration perks up
Annual mining profits tumble 72% to lowest point in a decade
Related Press Releases
IIROC Trading Resumption - ANF
IIROC Trading Halt - ANF
 

Companies in This Story

Anfield Nickel Corp
BHP Billiton



Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Northern Miner has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields