AvestaPolarit, of Finland. – A revised deal between
In 2000, Falco signed a letter of intent with Outokumpu to acquire half the deposit, and followed this up by completing a conceptual study. The study suggested the 7.02-tonne deposit, which averages 1.46% nickel and 0.71% copper, could produce a total of 5 million tonnes of ore at the annual rate of 750,000 tonnes. Ore would be milled and smelted at the Kidd metallurgical division, followed by refining in Sudbury, Ont., to produce 8,000 tonnes of nickel annually.
The new deal calls for Falco to pay $4 million plus, subject to certain conditions, another $10 million over the next two years. Also, a production royalty is to be paid if commercial production is achieved.
Falco says the revision will allow it to advance the project to production.
The company is in the midst of a prefeasibility study, following which it will begin advanced exploration. A full feasibility study will follow.
Outokumpu, in addition to various mining-related operations, owns a 55% stake in the world’s second-largest stainless steel producer
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