The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Positions Northern BC battery metals mine project for PFS North of 60 Mining News – October 28, 2022
Core from drilling that has outlined roughly 12.6 billion pounds of nickel and 758 million lb of cobalt at Giga Metals' Turnagain project in Northern British Columbia.
Giga Metals Corp. Oct. 27 reported a 41.5% increase in measured and indicated resources at its Turnagain nickel-cobalt project in Northern BC.
Since calculating an updated resource in 2019, Giga Metals has carried out expansion and geotechnical drilling in preparation for completing a feasibility study for the battery metals project.
Based on 6,295 meters of drilling completed in 2021, as well as revised geological modeling, Turnagain now hosts 1.52 million metric tons of measured and indicated resources averaging 0.21% (7.04 billion pounds) nickel and 0.013% (433.1 million lb) cobalt; plus 1.22 million metric tons of inferred resource averaging 0.22% (5.56 billion lb) nickel and 0.012% (325.3 million lb) cobalt.
"The updated mineral resource estimate for the Turnagain Project represents an important milestone in the path towards developing a large, long-life operation," said Giga Metals CEO Mark Jarvis. "The updated geological modelling has increased our level of certainty in the contained resources to feed a global-scale nickel sulphide concentrate facility."
In addition to drilling and geological modeling, the 2022 resource update benefitted from increased prices for nickel and cobalt, metals in high demand due to their use in the lithium-ion batteries powering electric vehicles.
To secure potential future battery metals from the Northern BC mine project, Mitsubishi Corp. agreed to pay Giga roughly US$6.2 million (C$8 million) to acquire a 15% interest in Hard Creek Nickel Corp., a joint venture company formed to advance Turnagain.
A 2020 preliminary economic assessment based on the 2019 resource calculation outlines plans for a mine at Turnagain that would produce an average of 33,215 metric tons of nickel and 1,962 metric tons of cobalt annually for 37 years.
At a US$7.50/lb nickel price, the Turnagain mine outlined in the 2020 PEA was calculated to have a pre-tax net present value (8% discount) deficit of US$269 million and an internal rate of return of 6.3%. At US$8.50/lb, the project is expected to have a pre-tax NPV (8% discount) of US$242 million and an IRR of 9.4%.
Nickel is currently selling for more than US$10/lb.
The next steps for the Hard Creek Nickel JV will be to use the significantly larger 2022 resource estimate as the basis for prefeasibility and feasibility level studies.
Engineering firm Tetra Tech is already carrying out optimization studies ahead of a prefeasibility study slated for completion in the first half of 2023 that will provide an updated mining scenario similar to the operation outlined in the PEA.
The JV is expected to have a separate PFS-level study completed that will include the addition of a pressure oxidation circuit to convert the concentrate produced at Turnagain into a mixed hydroxide precipitate, which is the chemical form of nickel and cobalt currently in highest demand by lithium-ion battery manufacturers.
"The potential addition of a pressure oxidation circuit to the flow sheet will provide flexibility in terms of the form of nickel and cobalt the project produces," Giga Metals President Martin Vydra said earlier this year. "We know from discussions with battery manufacturers and automobile OEMs (original equipment manufacturers) that this flexibility is important to the end users. Our project should be well positioned to provide whatever the customers want."
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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