It is reported that higher nickel prices and Asia's hunger for the main ingredient of stainless steel are speeding Royal Nickel Corporation's Dumont mining project 25 kilometers northwest of Amos, in Quebec's Abitibi region, towards production in 2017.

Mr Tyler Mitchelson CEO of Royal Nickel Corporation said that "If those prices remain favorable and the permitting process is successful, RNC will develop an open pit mine and concentrator with annual capacity of 64,000 tonnes or more than Voisey's Bay in Labrador and Raglan Nickel in Northern Quebec and approaching Vale Inco's 95,000 tonnes at Sudbury."

He added that "Copper may be everyone's darling, but nickel spiked at USD 42 a pound in 2007, then hit bottom at USD 4.85 in 2009 during the global financial crisis and now sells for about USD 12."

Mr Mitchelson, with 15 years' experience with Vale Inco, said that RNC's project requiring total investment of USD 2.3 billion can be profitable at USD 10 nickel, partly because it is located near established towns (Amos, Rouyn Noranda and Timmins) and has rail, road, natural gas and electric power facilities right at hand.

Estimated resource is seven million pounds, the pit is open at depth and the mine's life is 25 years. The mill would handle 100,000 tonnes daily. RNC conservatively estimates nickel prices, always volatile, will average USD 8 to USD 10 a pound in the longer term.

RNC went public in December 2010 with a USD 52 million equity issue, providing funds to cover the pre feasibility study due late this year. This will allow RNC to order long lead time equipment. The full bankable feasibility study is due in 2012 and, if favorable, RNC would go to the market for a further USD 50 to USD 60 million and negotiate debt financing.

(Sourced from www.montrealgazette.com)