Duketon Mining Ltd (ASX:DKM) has reported that it has intersected massive sulphides during a 6 hole drilling program at its 100% owned Rosie Nickel Project.
All drill holes are reported to have hit mineralisation, with the most recent hole (DKDD0017) hitting massive, stringer and blebby sulphides over 6 meters from 199.5 meters. Assays are expected within 6 to 8 weeks of publication.
Three holes within the project’s oxide zone have now also been completed for PGE metallurgical testwork, with samples currently in the laboratory.
Mineralisation in upper north area
Drilling at the Rosie Nickel Project is being undertaken for three main purposes:
- Increase confidence in mineralisation in the upper north area of the project
- Test at depth below the south-eastern (formerly Nariz) area
- Collect PGE rich oxide material from directly above the sulphide deposit for assay and PGE recovery/metallurgical testwork
Scoping study at Rosie
The above three areas have been identified via a scoping study (released to the market on 28th April 2021) as having potential upside by either impacting early cash flow or extending the life of mine. The scoping study delivered the following highlights:
- *Subject to cautionary statement contained within study
- 8-year mine life assumed
- NPV5 of ~ $161M (range $56m to $204M)
- IRR of ~ 54% (range 21% to 66%)
- Pre-tax cashflow of ~ $223M (range $91M to $278M)
- Pre-production capital cost of ~ $18M Simple decline and underground mine – minimal surface infrastructure
- Annual production of approximately 315kt of ore at 2.1% NiEq
Management comments
Duketon’s Managing Director Stuart Fogarty previously delivered the following comments from the release of the scoping study in April:
“The Scoping Study has delivered an excellent set of robust numbers showing a project that has exceptionally low up-front capital, robust economics with very good cash flows. The best part of this project is that it is a simple mining and trucking operation with impressive upside to exploration success. The optionality around the C2 resource and the possibility of building a concentrator will be looked at as part of the next level of study.”
Images: Duketon Mining Ltd