China smelter group agrees to lower Q1 copper charges
The charges tend to fall when ore supply declines and rise when more concentrate is available.
Magna Mining (TSXV: NICU) recently published the preliminary economic assessment (PEA) of its 100%-owned Crean Hill nickel project near Sudbury, Ontario.
The base case scenario for the PEA envisions a combination of open pit and underground mining, with mineable resources being sold to a third-party existing mill in Sudbury.
An alternative milling scenario was also studied, comparing the economics of the base case with an alternative processing scenario through a future mill at the company’s Shakespeare project.
Magna Mining CEO Jason Jessup said the PEA demonstrates why Crean Hill has the potential to be the next nickel producing mine in Canada.
“The results of the base case study show positive economics, a long mine life, modest upfront capital cost, and minimal permitting required before commencing advanced exploration development,” Jessup said.
The financial analysis for both the base case and alternative processing used metal prices of $9.50/lb. nickel, $3.50/lb. copper, $22/lb. cobalt, $1,000/oz. platinum, $1,800/oz. Palladium and $1,700/oz. gold.
The base case generates an after-tax net present value (NPV) (8% discount) of C$230.4 million ($175m) and an internal rate of return (IRR) of 23.4%, over the mine’s projected 15-year mine life.
The alternative processing generates an after-tax NPV (8% discount) of C$516.1 million, with an IRR of 38.4% over 19 years.
