IT’S all systems go for Jubilee Mines’ Sinclair nickel project in Western Australia after a pre-feasibility study confirmed the project’s technical and economic viability.
06 Sep 2007
The project – which will be completely self-funded by Jubilee– will be the company’s first new mine development outside of the Cosmos nickel operations, which are 100km south of Sinclair.
The project will include an open pit and underground mining operation, a new treatment facility with a base case 300,000 tonne per annum capacity, tailings storage facility, 200-person accommodation village, project infrastructure, airstrip and communication systems.
The go-ahead is based on the project’s indicated and inferred mineral resource of 1.22 million tonnes at 2.77% nickel for 33,799 nickel metal tonnes.
An updated resource including the results of successful drilling which has extended the deposit about 300m down-plunge is expected to be completed later this month.
Production is expected to average around 6,000 tonnes per annum of nickel-in-concentrate, with an initial four-year mine life based on the current resource.
Jubilee believes the forthcoming resource upgrade and ongoing exploration in the region could extend the mine life and upgrade production in the future.
The company is targeting the start of open pit oxide production in the June quarter 2008, with first sulphide concentrate production in the September quarter 2008.
Jubilee’s executive chairman Kerry Harmanis said Sinclair – a new grass roots discovery by Jubilee’s exploration team – is the first new standalone nickel project to be developed by the company in a new nickel province since Cosmos in the late 1990s.
“From late next year, Sinclair will make an important contribution to our growing production profile, supplementing production from the Alec Mairs Complex and Prospero at Cosmos,” Harmanis said.
“The start-up operation at Sinclair is very much based on the Cosmos model and we see it becoming the cornerstone of a substantial mining operation which will continue for many years to come.”
Recently, Jubilee recorded a net annual profit of $173.1 million and has updated its targeted production up to 30,000t of nickel concentrate per annum after fiscal 2011.
Shares in Jubilee gained 18c and was trading at $15.25 at midday.
TLM Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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