14th July PERTH (miningweekly.com) ASX- and Aim-listed European Nickel plans to start nickel laterite production at its Caldag mine, in Turkey, by 2012.
Speaking to journalists in Perth, deputy executive chairperson Simon Purkiss said that the final project financing required for the project would be in place by the end of this year, with construction of the $428-million project expected to take around 12 months.
The company still needed to raise around $200-million, but Purkiss said that there has been significant interest from several parties.
On Tuesday, the Perth- and London-based nickel producer announced that it would raise $60 million through a strategic partnership with Constantia Resources, an affiliate of Canada's Hunter Dickinson group.
The Caldag project is European Nickel's flagship asset, and was said to be one of the largest foreign direct investments in Turkey's mining industry.
With proven Joint Ore Reserves Committee (Jorc) reserves of 33,2-million tons at 1,13% nickel, the mine is targeting 20,000 t/y of nickel production over a 14 year life-of-mine.
Meanwhile, Purkiss said on Wednesday that European Nickel would complete the feasibility study for its Acoje project, in the Philippines, by the end of next year.
Acoje was expected to come on line within 12 to 18 months of Caldag.
The project costs for Acoje were estimated to be in the region of $500-million, and would boost European Nickel's production to 45,000 t/y nickel.
This, Purkiss said, would make the company one of Australia's largest nickel producers.
The Acoje project has a Jorc resource of 34.41 million tons, at 1,09% nickel. The project was likely to produce around 24,500 t of nickel a year, over a life-of-mine of ten years.
