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Tech

Queensland Pacific Metals pilot plant campaign provides confidence to proceed with TECH Project DFS

Around 14 dry tones of representative New Caledonian ore was processed, producing mixed hydroxide precipitate (MHP) that will be sent to potential offtakers.

Queensland Pacific Metals Ltd’s (ASX:QPM) (FRA:4EA) pilot plant test-work has confirmed the flowsheet, providing confidence to proceed towards a definitive feasibility study for the Townsville Energy Chemicals Hub (TECH) Project in North Queensland.

The tests focused on the direct nickel process (DNi ProcessTM) and its application to representative ore sourced from QPM’s New Caledonia ore supply partners Societe des Mines de la Tontouta (SMT) and Societe Miniere Georges Montagnat SARL (SMGM).

Undertaken by ALS Global at its Balcatta Centre of Hydrometallurgy Excellence for QPM, in conjunction with consultants and partners including Altilium Group, CSIRO and Hatch, the second pilot plant campaign concluded on Saturday, February 13, after operating for 15 days.

Across the two campaigns, 14 dry tonnes of ore have been processed through the pilot plant, yielding nickel-cobalt mixed hydroxide precipitate (MHP), co-products and leach residue.

No fatal flaws were identified throughout.

Process to select engineering contractor

QPM chief executive officer Stephen Grocott said: “Continuous pilot plant operation is difficult work given the scale and limited automation compared with a commercial plant, so I would like to share my appreciation for the hard work put in by all involved.

“Overall, the pilot test-work has been a success, delivering on key outcomes and identifying potential areas of improvement which will be incorporated into the DFS.

“We are now ready to select an engineering contractor with which to undertake the DFS.”

Nitric acid ore leach performance exceeded QPM’s expectations with 98.7% nickel extraction, 96.0% cobalt extraction and 95.3% iron extraction.

Solid-liquid separation performance of leach residue exceeded design expectations confirming that the TECH Project will not require any tailings dam and iron precipitation yielded high-grade 61.6% iron hematite product that will now be prepared for agglomeration and testing as blast furnace feed for steel making.

The test-work also recovered nitric acid from iron hydrolysis circuit producing acid at the design concentration which was recycled directly back to the leach circuit.

Looking ahead

Next steps for the company comprise further test-work to refine pilot plant products into saleable products such as nickel sulphate, cobalt sulphate, high purity alumina, hematite, magnesia and nitric acid recycle.

QPM intends to prepare and distribute samples to offtakers, undertake the collection of pilot plant data for use as part of DFS, evaluate potential flowsheet improvements to enhance the TECH Project and select an engineering contractor.

Shares have been as much as 12 per cent higher this morning to 6.8 cents.

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