Entrance to the nickel business doesn’t come cheap. The price tag for rehabilitating the mines, defining reserves and building a concentrator, is estimated at $100 million, Peter Goodwin, president of LynnGold told The Northern Miner. Pending receipt of a positive feasibility study, Goodwin estimates at least two years would be required to reopen the mines.
The mines hosts reserves of 19.3 million tons to a depth of 4,000 ft. The metal content is 231 million lb of nickel and 123 million lb of copper which translates into a grade of 0.59% nickel and 0.32% copper per ton.
Although low grade, Goodwin feels higher grading zones can be delineated. Also, significant economies of scale could be enjoyed by increasing mine output. “Sherritt Gordon operated the mines at 2,000 tons per day,” Goodwin explained. “The economies improve considerably at higher rates.”
The reserves are accessible by two shafts, a winze and a ramp. Little exploration has been carried out below the 4,000-ft level, LynnGold says.
The company plans to complete a prefeasibility study, the first phase of which will include a re-evaluation of the reserves with the intention of identifying higher grading blocks that could be mined by bulk mining methods. The company will also test for the depth extension of the mineralized zones below the 4,000-ft level.
A second phase will involve an economic assessment of the project followed by a full feasibility study.
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