ASIA — Weda Bay develops nickel-cobalt prospect in Indonesia

Based on a recently completed evaluation study, Weda Bay Minerals (WDA-A) has resolved to proceed with development of its nickel-cobalt property on the Indonesian island of Halmahera.

The project, in which the Indonesian government owns a 10% interest through state-owned Aneka Tambang, contains a total resource estimated at 92.1 million tonnes grading 1.39% nickel and 0.1% cobalt. Included in this figure is an indicated resource of 63.8 million tonnes grading 1.51% nickel and 0.09% cobalt. Additional potential nickel and cobalt-bearing laterites in the vicinity could add another 150 million tonnes.

The Vancouver-based junior reports that, based on metallurgical tests, all mineralization is amenable to pressure-acid-leach technology, and that “very high” recoveries of nickel, cobalt and scandium (a potential byproduct) are achievable.

Weda Bay envisions an operation equipped with a pressure-acid plant capable of processing up to 3 million tonnes per year over 30 years. The proposed treatment plant would be situated next to a deep sheltered port, not far from the mine site.

The first 10 years of ore feed will be derived from four prospects, namely, Sake River, Uni-Uni Hill, Tarzan Hill and Area 2, says Weda Bay’s president, Louis Clinton. “There are higher-grade zones in these areas, which will allow for better-grade material to be scheduled early in the mine life.” Based on projections in the evaluation report, the material processed in the early years should run 1.61% nickel and 0.07% cobalt. The stripping ratio is estimated to be 0.21 to 1.

The capital cost of the Halmahera Island project will be about US$555 million, which equates to a unit cost of US$8.34 per lb. nickel, and the company says the energy derived from the production of sulphuric acid (required in the leaching process) would meet most of the project’s requirements. Financing plans have yet to be announced.

A planned exploration program is expected to boost resources to beyond 200 million tonnes of lateritic material, Weda Bay states. Work is currently focused on Sake River West in an attempt to locate additional high-grade ore at the Big Kahuna prospect, where laterites have been identified over an area measuring 3 km long by 2 km wide.

Additional metallurgical tests are under way, including a 3-tonne bulk sample that is being tested through a pilot pressure-acid-leach facility at Fort Saskatchewan, Alta. As of December 1997, Weda Bay had about $4.8 million in its treasury.