Crew acquires sulphur deposit in Philippines

In an attempt to secure a stable sulphur supply for its proposed heap pressure acid leach (HPAL) nickel laterite project on the Philippine island of Mindoro, Crew Development (CRU-T) has acquired a 100% interest in the nearby Pamplona deposit.

Covering 39 sq. km on the island of Negros, the project hosts 60 million tonnes with a grade of 13.8% elemental sulphur and 17% sulphide sulphur for a combined weighted average of 30.8% sulphur. The deposit has been deemed minable by open-pit methods and is 5 km from a deep-sea port.

Crew feels that this acquisition will benefit its proposed nickel operation to the north. Sulphur is the largest cash component of the HPAL process, and the company now has an uninterrupted supply, as well as a stable price, for the life of the Mindoro operation. HPAL technology is relatively new and is expected to enhance previously sub-economic nickel projects by slashing production costs (much as heap-leaching has done for gold and solvent extraction-electrowinning has done for copper).

In August 1998, Kvaerner Metals completed a positive prefeasibility study on the nickel project. It showed that nickel could be produced at US$1.06 per lb., or US30 per lb. net of cobalt credits.

Measured and indicated resources are pegged at 70 million tonnes of laterite ore grading 1% nickel and 0.01% cobalt — sufficient for a 20-year mine life. The project is expected to produce 126,000 tonnes of ammonium sulphate per year as a byproduct of the mining process. The Philippines imports about 400,000 tonnes of ammonium sulphate per year, which it uses for rice and sugar cane production.

The project has deep-water access, and a gas pipeline is being constructed close to the planned location of the processing plant. A full feasibility study will attempt to determine the viability of a 40,000-tonne-per-year nickel operation. The project is also expected to produce 3,000 tonnes of cobalt and 216,000 tonnes of ammonium sulphate per year.