“With demand and prices now surging for Class 1 nickel sulphide on the back of increased demand in electric vehicle batteries, production at the Bucko Lake mine appears to be economically feasible once again.”
According to the resource estimate, Bucko Lake contains 5.7 million measured and indicated tonnes grading 1.24% nickel (using a 0.7% nickel cut-off grade) and 0.11% copper for contained metal content of 156.3 million lb. of nickel and 13.4 million lb. of copper.
Additional inferred resources total 10.6 million tonnes grading 1.18% nickel (using a 0.7% nickel cut-off grade) and 0.13% copper for contained metal content of 275.6 million lb. of nickel and 31.2 million lb. of copper.
Using a nickel price assumption of $13.18 per lb., the project generates an after-tax net present value (at a 6% discount rate) of $169 million and an internal rate of return of 30%.
Initial capital costs of $87 million (including $11 million contingency) will be paid back in 3.3 years.
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