Cannon Resources (ASX:CNR) expects to generate US$379 million ($529 million) in revenue from its Fisher East Nickel Project over the first 11 years of operation. The project lies 430km north of Kalgoorlie in Western Australia’s Goldfields-Esperance region.
Production of nickel, cobalt, and palladium between the ninth and 11th years could help Cannon generate an average of more than US$275 million ($384 million) of earnings before interest, taxes, depreciation, and amortisation.
Preliminary economic assessment results indicate that higher-grade ore is expected to be accessed from underground. Revenue will primarily be generated from by-product credits that help to support margins and diversify the commodity mix.
These results not only indicate a robust and capital-efficient development pathway for Fisher East but also support the project’s potential to become a significant ‘high-grade’ nickel sulphide development.
The plant is predicted to process up to 1.9 million tonnes (Mt) of nickel, cobalt, and palladium ore per annum. A combined life-of-mine 20.7Mt of ore at 1.56% nickel could contain about 23,000 tonnes of nickel product.
Each year, the mine is promised to produce 23,800t of nickel, 500t of cobalt, and 10,400 ounces of palladium.
The project is financially supported by Kinterra Capital Corp.
“Completion of the preliminary economic assessment marks an important milestone in Fisher East’s development trajectory,” Kinterra Co-Founder and Co-Managing Partner Cheryl Brandon says.
“Since 2023 we have completed detailed drilling and engineering programs, which have resulted in an increase in contained nickel by more than 200%, while the system remains open at depth across key deposits,” Cannon Vice President and Project Director Chris O’Brien adds.
Kinterra and Cannon are now considering strategic project partnership opportunities with potential offtake and co-investment partners.
Environmental, heritage, hydrogeological, and cultural baseline studies are well underway. Permit applications will be submitted during 2027.
The companies are planning to make a final investment decision in 2029 and produce their first nickel in 2030.
Cannon Resources is a nickel exploration and development company with assets mainly in Western Australia’s northeast Goldfields region.
Write to Richard Szabo at Mining.com.au
Images: Cannon Resources
