"I see grade as a problem because Nepeans' life of mine head grade was below 3%. With it being a relatively narrow ore-body the grade and/or width would need to increase substantially to make it profitable (more Ni Tonnes/vertical metre). The geological characteristics of nickel ore-bodies don't generally change with depth so improved grades are unlikely."
Arrh, just slightly completely incorrect.
Nepean is being called a dead ringer for flying fox - maybe a few of you should read a bit about flying fox below --- particularly take note about the grade increasing with depth.
When we drill as far as I know the targeted depth is about 1 kilometre.
But, lets not get facts in the way of another good negative story eh?
Have a great day all
Pinto
"Flying Fox was Western Areas first production mine and is one of the highest grade nickel mines in the world. Production commenced in 2006 and the underground mine now operates at depths of over 1km underground. Flying Fox is a low cash cost operation with nickel produced at under US$3 per pound. Flying Fox mine life now approaches 10 years. Production for FY12 is expected at around 17,000 tonnes of nickel in ore.
The Flying Fox orebody extends from 250m to 1.2km below the surface and includes discrete independent orebodies with possible extensions at depth. Ore grade increases at depth from 3.9% to 6.2% nickel.
"The primary stoping method used is Avoca longhole in order to attempt 100% recovery of the high grade orebody. In the narrower sections of the orebody both modified Avoca and hand held air-leg techniques are used.
The original Flying Fox underground mine was owned and operated by the Finnish company Outokumpu from 1992 to 1997 and produced 0.24Mt @ 3.2% Ni from workings to a depth of 200m below surface. Outokumpu also operated two other nickel mines (Cosmic Boy and Diggers Rocks) from 1992 to 1999 and an associated nickel concentrator located adjacent to the Cosmic Boy mine.
Western Areas discovered the extensive mineralisation below the original underground mine after purchasing the tenement package."
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