Tartisan Nickel Corp. (CSE:TN, OTCQX:TTSRF) said it has announced the completion and filing of the preliminary economic assessment (PEA) for its 100% owned Kenbridge Nickel Project in northwestern Ontario.
The Kenbridge Nickel Project is in the Kenora Mining District. The property is covered by patented and unpatented mining claims totalling 4,108.42 hectares. Since 1937, 665 surface and underground drill holes totalling 99,741 metres (m) have been completed on the property.
Kenbridge has an existing shaft to a depth of 622m, with 13 level stations at 46m intervals below the shaft collar and two levels developed at 107m and 152m below the shaft collar, according to Tartisan.
Tartisan CEO Mark Appleby said: "There is 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. The PEA provides compelling evidence to move into pre-feasibility and for the Kenbridge Nickel Project to move into a production scenario.”
According to Tartisan, this PEA focuses solely on underground mining of the mineral resources at the Kenbridge Nickel Project and provides a solid base case for moving the Kenbridge Nickel Project forward. The PEA indicates a nine-year mine plan based on a 1,500 tonne per day (tpd) underground mining and processing operation, which would have the capacity and could potentially accelerate to 2,000 tpd.
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, according to Tartisan.
Measured and indicated mineral resources represent 3,445,000 tonnes at 0.97% nickel, 0.52% copper and 0.013% cobalt (74 million pounds nickel, 39.1 million pounds copper).
Inferred mineral resources represent 1,014,000 tonnes at 1.47% nickel, 0.67% copper and 0.011% cobalt (32.7 million pounds nickel, 14.9 million pounds copper).
Metal prices are based on long-term industry consensus forecast with nickel representing the primary contribution to revenues. US dollar metal prices used in the PEA were USD$10/pound nickel, USD$4/pound copper and USD$26/pound copper (a US to Canadian dollar exchange rate of 0.78 was applied).
Life-of-mine (LOM) revenues from net smelter returns are estimated at C$837 million. LOM operating costs are estimated at $292 million. Mining costs are estimated at $38.93 per tonne mined, processing costs are $17.74 per tonne and general and administrative costs are $7.96 per tonne.
Cash operating costs are estimated at US$3.76/lb nickel equivalent (NiEq) and all-in sustaining costs (AISC) are US$4.99/lb NiEq. LOM capital costs are estimated at $227 million and include pre-production capital costs of $133.7 million. Pre-tax net present value (NPV) is estimated at $182.5 million using a 5% discount rate. Pre-tax internal rate of return (IRR) is 26%. Payback period is 3.5 years on an after-tax basis.
Appleby also noted the company has commenced the necessary baseline studies and has undertaken additional studies, which are essential and necessary in project permitting. The company continues to upgrade the access road to site with completion anticipated in late September to October 2022.
The PEA was independently prepared by P&E Mining Consultants Inc of Brampton, Ontario under the supervision of Eugene J Puritch.
Tartisan Nickel Corp. (CSE:TN, OTCQX:TTSRF)is a Canadian mineral exploration and mine development company whose flagship asset is the Kenbridge Nickel-Copper project in the Kenora Mining District, in northwestern Ontario. Tartisan also owns the Sill Lake Silver property in Sault St. Marie, Ontario as well as the Don Pancho Manganese-Zinc-Lead-Silver project in Peru.
Contact the author at susie@proactiveinvestors.com