Tartisan Nickel Corp. (CSE:TN, OTCQX:TTSRF) said it has completed a Preliminary Economic Assessment (PEA) for its 100%-owned Kenbridge Nickel Project in Ontario’s Kenora Mining District.
The PEA provides a “solid base case” for moving forward at Kenbridge, the company said, indicating a 9-year mine plan based on a 1,500-tonne-per-day underground mining and processing operation.
The mine plan assumes the potentially extractable tonnage of measured, indicated and inferred mineral resources, which assumes overall dilution of 47% (18% internal dilution from stope designs plus 29% external dilution) and a 94% mine recovery factor, the company said. Measured and indicated mineral resources represent roughly 3.5 million tonnes at 0.70% nickel, 0.35% copper and 0.01% cobalt, and inferred mineral resources represent about 1 million tonnes at 1.21% nickel, 0.56% copper and 0.01% cobalt.
READ: Tartisan Nickel begins environmental baseline studies at Kenbridge nickel project in Ontario
Life of mine (LOM) processing would recover 200,900 tonnes of nickel concentrate at 15% nickel and 66,900 tonnes of copper concentrate at 24% copper. All told, that comes to 52.6 million pounds (lbs) of payable nickel and 30.7 million lbs of payable copper.
LOM revenues from net smelter returns are estimated at $837 million, operating costs are estimated at $292 million, mining costs are estimated at $38.94 per tonne mined, processing costs are $17.74 per tonne and G&A costs are $7.96 per tonne, the company noted.
Crunching the numbers, Tartisan estimates an after-tax cash flow of $180 million.
“The PEA provides compelling evidence to move towards feasibility and for the Kenbridge Nickel Project to move into production,” CEO Mark Appleby said in a statement. “The company has commenced the necessary baseline studies which are essential and necessary in project permitting and is upgrading the access road to site with completion anticipated in September 2022."
He continued: “Tartisan continues to develop positive relationships with its surrounding First Nations through its First Nation consulting partner Talon Resources and Community development Inc. Every effort is being made for the Tartisan Kenbridge Project to become a part of the nickel supply chain this decade.”
Kenbridge has an existing shaft to a depth of 2,042 feet (622 meters), with level stations at 150 ft (45m) intervals below the shaft collar and two levels developed at 350 ft (107m) and 500 ft (152m) below the shaft collar.
"There remains excellent potential to increase and upgrade the quality of the near surface mineralization at Kenbridge thereby adding additional years of production or providing the basis for an increase in annual throughput,” Appleby added. “By adjusting the mining plan to be an underground operation it allows Tartisan to utilize the existing shaft infrastructure thereby accessing higher grades of mineralization early in the proposed mine life.”
Kenbridge is located near the township of Sioux Narrows. The project, which has never been mined, has a mineral resource estimate and a 622m three-compartment shaft with two underground level workstations.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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