BNamericas reported that Canadian miner HudBay Minerals aims to complete an updated feasibility study in mid 2010 for its Fénix nickel project in Guatemala.

Mr David Bryson senior VP & CFO of HudBay said that work is focused on optimization, including better power supply opportunities, and improvement in ore grades. He added that "It's a very advanced project technically. We think that there is good potential in this project."

He said that the company's main focus is the optimization of its copper and zinc production and the Lalor Lake zinc project in Manitoba. He added that "But we also want to add additional legs of production outside of northern Manitoba. Having a platform like Fénix can reduce our dependence on our northern Manitoba operations and HudBay is also looking at acquisition opportunities."

Fenix's existing feasibility study shows 41.4 million tonnes of proven and probable reserves grading 1.63% nickel and a start up CAPEX of USD 640 million. Production would be 590,000 tonnes of nickel over a 30 year mine life using conventional smelting technology. Phase 2 of the project assumes that a new solid fuel power plant will be in service by the end of the fifth year of production, with an additional estimated capital cost of USD 344 million.

The project has been the subject of local opposition, particularly by families who refuse to relocate.

(Sourced from www.bnamericas.com)