Roughly three weeks after receiving an environmental permit Skye Resources (SKR-T) has now been granted a construction permit for its Fenix ferro-nickel in Guatemala.
The company says basic engineering work at the site is already over half done and orders for key equipment will go out in the third quarter. So far, work at the camp has been limited to refitting offices for use during construction.
Fenix is slated to go into production in the second half of 2009 with the cost of developing the project coming in at $1.1 billion.
Once built, the mine is estimated to turn out 1.3 billion lbs. of nickel over its 30 year mine-life with an average of 1.37 million tonnes of ore grading 1.63% nickel being processed annually.
Its feasibility study estimated a 13.4% internal rate of return (IRR) at US$5.00 per lb. nickel.
Cash operating costs were estimated at US$1.87 per lb. nickel (after iron credits and before royalties) are estimated for the first 20 years.
In Toronto on July 3 the Vancouver-based companys shares climbed 2.4% or 37 to $15.97 on 272,000 shares traded.
Full financing for the massive project continues to be an un-resolved issue for the company.
After a takeover by a major never materialized last year, Skye had its share price chopped by nearly 50% after saying it would finance the project on its own.
It has said it will have debt financing in place by the third quarter.
In an effort to lessen the amount of debt it will have to take, the company is considering increasing nickel production by accelerating the commissioning of a second line at the project.
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