Metallica Minerals has received a boost with after a Scoping Study on the first stage of proposed mining and processing of the NORNICO nickel cobalt & scandium project returned robust project economics and indicated technical viability.
The returns from the project economics can be boosted further with inclusion of potential to process high grade scandium ores in the feed discovered by Metallica earlier this year at the Lucknow deposit at the southern end of NORNICO. Scandium is a valuable rare earth element used in aluminium alloys, fuel cells and lighting.
These will be included in an enhanced scoping study by year end. NORNICO is located northwest of Townsville in North Queensland. The two scoping studies will position Metallica towards a decision to commence a full feasibility study early next year, with a view to achieving first Ni Co Sc production from the Greenvale and nearby Lucknow deposits, starting 2013.
The revised Scoping Study) will also allow for further resource drilling to further enhance and define the Greenvale Ni-Co resource base in preparation for mining studies before the expected commencement of a full feasibility study in early 2011.
Mr Andrew Gillies MD of Metallica said that "The tri metal (Ni Co Sc) processing opportunity that NORNICO presents is unique in Australia’s minerals sector, and is further enhanced by Metallica’s access to high grade Ni Co Sc ores, an excellent processing site and infrastructural setting. We are well advanced in developing an innovative and highly efficient flow sheet for simultaneous metal recovery of Ni Co and Sc, thereby effectively reducing unit operating and capital costs. Metallica also has the potential for boosting revenues by incorporating very high Sc ore in to the feed, as we expect the global scandium market to grow substantially."
He added that "Our discovery earlier this year at NORNICO of the Lucknow Scandium deposit, containing an Indicated and Inferred resource of 4.1 million tonnes at 205 grams per tonne Sc (80% MLM/20% SRL) close to Greenvale, significantly underpinned NORNICO’s development options. The Lucknow mineralization has emerged as larger and higher grade than our existing Kokomo scandium resource to its north, and it is not unreasonable to expect that the NORNICO Stage plant could ultimately, within the decade, convert from a Ni Co Sc ore facility to a predominantly Sc ore operation and a major long term world supplier of scandium oxide."
Mr Andrew Gillies said that "We envisage that NORNICO Stage 2 will be a much larger Ni Co +/- Sc operation, hosting its own acid and power plant. It would be established at the northern end of the NORNICO project, at the Bell Creek Ni Co project near Mt Garnet, with supplementary ore feed trucked from the Minnamoolka and Kokomo deposits. Metallica’s mining and processing intent is to start modestly, then scale up later with a much larger Stage operation while increasing Stage 1 scandium production. The latter is subject to the expected growth in the scandium market and NORNICO’s performance in delivering secure, long term scandium supply."
He added that "Our NORNICO processing operations will be technologically advanced and non conventional and cannot be compared to most previous nickel laterite projects. Large scale, huge capital cost nickel laterite operations in remote or difficult locations are not the way to go the Metallica pathway is focused on margins and maximizing returns from the flexibility of three simultaneous revenue streams from nickel, cobalt and scandium depending on variations of the metal prices and markets at a given time."
