Sirius Resources (ASX:SIR) has ticked off another milestone at Nova nickel project in the Fraser Range of Western Australia, with the WA Department of Mines and Petroleum granting a mining lease (M28/376).
Nova has estimated C1 cash cost of A$1.66/lb which is in the lowest quartile of global producers, and estimated all-in sustaining cost of A$2.32/lb nickel - which is substantially better than Scoping Study.
The mining lease was granted nine business days after signing Mining Access Agreement with traditional owners, with the remaining development permitting and approval processes are now underway.
Sirius can now start the process of obtaining those approvals and permits which were contingent on having a granted Mining Lease.
The company is targeting development in early 2015.
Sirius is well-funded with cash of A$244 million for project development and exploration following the recent A$189 million placement.
Nova key points
- Completed Nova Definitive Feasibility Study (DFS) on time and within 2 years of discovery -DFS outcomes similar to / better than the scoping study.
- Estimated capital cost of A$473 million is very similar to scoping study.
- Initial mine life 10 years + 2 years development, excluding exploration upside
- Forecast life of mine nickel revenue of A$4.5 billion and net cashflow of A$2.7 billion at US$10/lb nickel (this is lower than many current nickel price forecasts).
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