for whom the bell tolls

MFC, who are doing the feasibility study on Barnes Hill, have announced they have finished their first "draft" feasibility study - 3 months late but that is to be expected from PRW/MFC.

Here is the key comment (read between the lines)

"Work to date has focussed on preliminary costing and modelling of the project at a throughput rate of 250,000 tonnes per annum. It has shown that economy of scale and consistent nickel recovery from the leach are the primary economic drivers for the project, with first pass operating and capital costs estimates indicating that an increased scale of 500,000 tonnes per annum throughput is required to achieve a more robust return on projected capital."
http://www.asx.com.au/asxpdf/20111006/pdf/421l4m664jbxgm.pdf

Translation: the economics of 250,000tpa really blow.

MFC are now going to dither around till mid-2012 reworking their spreadsheets - will probably miss that deadline - and then announce something in 2013 ..... who knows?