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Additional Information
Market: AIM
Sector: General Mining - Nickel and Cobalt
EPIC: ENK
Latest Price: 9.68p  (1.68% Ascending)
52-week High: 21.25p
52-week Low: 8.88p
Market Cap: 25.37M
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ENK
www.enk.co.uk

ENK (AIM/PLUS/ASX: ENK) is an emerging mid-tier nickel laterite producer focused on growth with assets in Turkey, the Philippines and Albania.

ENK has developed an innovative, low cost, environmentally sensitive heap leach technology, which offers a competitive edge over conventional nickel laterite processing.

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European Nickel clears another hurdle on the path to nickel production

3rd Jun 2009, 9:00 am European Nickel clears another hurdle on the path to nickel production

European Nickel (AIM: ENK) took another step towards full commercial production at the Caldag Nickel-Cobalt Laterite Project in Turkey today. The company confirmed that it had completed a US$3.7 million payment, which included a one-off forestry fee.

European Nickel have developed and demonstrated a new process for the extraction of nickel and cobalt from European “dry” laterite ores: heap leaching, to produce a mixed hydroxide product (MHP) for further refining into its component metals. Three years of continuous operation at Caldag using a large-scale demonstration plant have shown the process is effective, generating 75% recoveries of both metals over a 20 month leach cycle.


European Nicked said the payment would allow it to commence site preparation for earthworks and development once project funding is completed – anticipated in the second half of 2009. The company recently announced that it had entered into agreements with two Chinese partners, Jiangxi Rare Earth & Rare Metals Tungsten Group Corp (JXTC) and China Tianchen Engineering Corporation (TCC).

JXTC are a large state-owned enterprise based in Jiangxi province, and are building the world's first dedicated MHP nickel refinery, due to come on-stream in 2010. They will take a 20% stake in the project by contributing US$20 million, and also wish to take 50% of Caldag's output, already verbally agreed by BHP Billiton, to whom all output is currently committed.

TCC, a global EPC provider, are to arrange for the provision of US$350 million of financing, predominantly from Chinese banks. They will receive a 2% stake in the project for performing this role, and will also become European Nickel's preferred EPC contractor for the next five years.

Caldag contains a JORC proven reserve of 33.2 million tonnes at 1.13% nickel, for a nickel content of 375,000 tonnes.  

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