With a full feasibility study in progress,
The bulk sample would supply material for metallurgical testing at a pilot plant built by SGS Lakefield Research at its facility in Lakefield, Ont. Lakefield Research has already tested the process designed for Nico on some material, producing cobalt, cobalt carbonate, gold, and a bismuth concentrate.
Sampling plans call for a 900-metre decline down to 275 metres vertical depth, with 700 metres of underground workings including vent raises. The workings, on two levels, would intersect about a 900-metre strike length of the deposit, providing about 30,000 tonnes of material for testing.
Permits are in place for the underground work, which would also take out 120,000 tonnes of waste rock.
The feasibility study is examining the economics of a mining operation that would mill 3,000 tonnes per day. Annually, the mine would produce 1,000 to 1,500 tonnes bismuth-in-concentrate; 1,200 to 1,500 tonnes cobalt, either as cathode metal or as cobalt carbonate; and between 50,000 and 100,000 oz. gold, out of 1 million tonnes of ore.
Nico has an indicated resource of 7 million tonnes grading 2.6 grams gold per tonne, 0.16% cobalt and 0.22% bismuth in assumed underground zones. Another 9.3 million tonnes of indicated resources, grading 0.35 gram gold per tonne, 0.11% cobalt and 0.12% bismuth, are in zones nearer the surface, inside a proposed pit limit with a stripping ratio of 1.75.
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