Metallurgical test results from Nuinsco Resources’ (NWI-T) wholly owned Minago deposit came in, and the news is good.
The Toronto-based company saw its shares climb nearly 17% or 5 to 38, with roughly 695,000 shares trading hands, after announcing concentrate results of 27% nickel with a 57% recovery. The company says a full scoping study will be finished in November.
In a release Nuinsco president Brian Robertson said to his knowledge, the concentrate was “one of the highest grade nickel concentrates in the world.”
Nuinsco says the high grade is due to the presence of millerite which contains 64.7% nickel and the low sulphide content of the deposit.
In addition to nickel, the concentrate also contains 1.3% copper, 8.77 grams palladium per tonne, 3.67 grams platinum per tonne, 0.35 grams gold per tonne, 6 grams silver and 0.38% cobalt. Magnesium oxide content was 9.5%.
The company says Minago’s sulphide nickel could potentially be mined as an open pit. The project is located in Manitoba’s Thompson nickel belt.
The project has 30 million tonnes in the measured and indicated category grading 0.64% nickel for 423 million lbs. It has a further 27 million tonnes of inferred resources at 0.67% nickel hosting 399 million lbs. of nickel. Resources were estimated using a 0.4% nickel cut-off grade.
Minago is one of Canada’s largest undeveloped nickel deposits.
The news comes as Nuinsco is in the midst of plans to restructure its assets so that it can spin its nickel projects into a nickel pure-play.
The company says it will transfer its Lac Rocher, Mel and Minago nickel projects into a separate company.
Shareholders will be able to get new common shares of Nuinsco and common shares of the Nickel company in exchange for the common shares of Nuinsco on the record date of the arrangement once it goes through.
Nuinsco will continue to hold its non-nickel properties in Canada and Turkey, and will retain roughly a 25% equity interest in the new nickel company.
At press time, nickel was trading at US$15.82 a lb.
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