Wednesday, July 07, 2004 THE bankable feasibility study at Sherlock Bay Nickel Corp's flagship nickel project in the Pilbara has been delayed until at least the end of the month but the company said it remains on track to bring the project online by April of next year at a cost of $35 million.
Drilling problems associated with the pit design and geo-technical work are responsible for the study delay.
Managing director Boris Gerick said the resource would be re-estimated with an upgrade anticipated.
"We are still cutting the core but we do expect an upgrade of the resource," he said.
The current measured resource at the project stands at 9 million tonnes at 0.53% nickel and 0.1% copper.
Sherlock Bay is expected to have a four and a half year mine life and will produce at least 8,500 tonnes nickel, 100t of cobalt and 1,600t copper annually at an operating cost of $1.70 per pound.
The total mine life production is estimated at 38,100 tonnes of nickel, 7200t of copper and 450 tonnes of copper.
The company commissioned RSG Global to review the draft BFS last month.
Gerick said a $15 million convertible note would be used to finance the project, in addition to bank debt.
The company is now seeking project financing for the remaining $20 million capital outlay for the project, with a decision expected in three months.
Shares in Sherlock Bay were last trading unchanged at 9.4c on the ASX.
SHN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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