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Mining & Minerals Projects

Big potential of Sirius' Nova-Bollinger nickel mine

0.0 / 6 April /
Big potential of Sirius' Nova-Bollinger nickel mine

Mark Bennett, who is the company’s managing director, stated that Sirius Resources has received significant interest from financiers after the release of its Scoping Study in September of this year.

 

“Our scoping study has firmed that Nova and its nearby subsequent Bollinger discovery is a financially and technically low risk minimum ten year mine life project,” said Bennet.

 

 

“We believe that once production commences, Sirius will emerge as between the 10th and 14th largest nickel producer in the world,” he said.

 

He also added that the project is already attracting unsolicited financing offers at “incredibly cheap rates” which means that interested parties could “get a seat at the table”.

 

It is anticipated that Nova will yield C1 cash costs of $US1.57/pound in concentrates net of by-product credits.

 

“The $471million capex is in line with our expectations but does include a contingency of $AU51 million for delays and inflation – but hopefully we won’t encounter those,” Bennett said.

 

The firm is hoping that the expected ramp up of the Nova mine will coincide with a predicted revival of the nickel price in the market.

 

According to Mr Bennet, the project is an opportunity to “catch the wave that is coming”, particularly with world nickel production increasingly being “under the water”.

 

“The consensus nickel pricing during our ten year mine life, starting in 2016 after a two year mine construction period, is forecast to be around $US10 a pound,” Bennett said.

 

Photo Source: Telegraph

 

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