Sirius Resources shares gained on the ASX today after the company released a scoping study for its Nova-Bollinger nickel prospect that confirmed the deposit could be developed at relatively low risk.
The study flagged life of mine nickel revenue of $4.6 billion, at cash operating costs of $1.75 per pound of nickel in concentrate.
The cash costs place Sirius in the bottom 20 per cent bracket for nickel producers globally.
Sirius said the mine would cost $471 million to take to first production, including $51 million of contingency funds.
The company plans to produce nickel and copper concentrates from the deposit by mid-2016.
At close of trade today, Sirius shares were up 5.6 per cent, at $2.82.
Managing director Mark Bennett said the study was an important milestone for the company.
“It confirms the exceptional quality of the Nova-Bollinger deposit and demonstrates the likelihood that Sirius will become a significant Australian and world-scale nickel producer with operating costs in the lowest 20 per cent of nickel production globally,” Dr Bennett said.
“The scoping study highlights our base case production scenario, with scope to improve the project economics through further exploration success from our extensive regional portfolio.”
