Outokumpu Mines buys 40% stake in Namew Lake

A 40% interest in Hudson Bay Mining and Smelting’s high-grade Namew Lake nickel deposit has been purchased for $5.2 million by Outokumpu Mines.

Located in Manitoba, the Namew Lake deposit hosts reserves of 2.82 million tons grading 2.44% nickel and 0.9% copper with minor amounts of platinum and palladium.

Last September Hudson Bay and Outokumpu signed a letter of intent covering the joint exploration and possible future development of the property.

The estimated cost to bring this high-grade property into production runs about $68.5 million, Outokumpu President Adrian Molinari tells The Northern Miner. A production decision is expected to come down in the second quarter of this year, he says. And should the green light be given, the project expenditures would be split 60/40 between Hudson Bay and Outokumpu.