Future Battery Minerals (ASX:FBM) has received ‘positive’ Scoping Study results that demonstrate the potential viability of its flagship Saints Nickel Project in Western Australia.
Future Battery Minerals says the Scoping Study has confirmed ‘strong’ financial metrics for the project based on a relatively low pre-production capital cost of $8.6 million.
The company notes, based on key base case scenario assumptions, project payback is modelled to occur within just 12 months of development with a 5-year life of mine (LOM).
Additionally, the project looks to be technically low-risk due to the simple mine plan drawing from the majority indicated resource and the high processing metal recoveries.
Metallurgical testwork was completed with saleable concentrate produced comprising grades of 10-14% nickel with ‘excellent’ recoveries of 80–87% for nickel, 95% for copper and 84–92% for cobalt.
Meanwhile, Future Battery Minerals announces it has completed metallurgical testwork with saleable concentrate produced comprising grades of 10-14% Ni, along with ‘excellent’ recoveries of 80-87% for nickel, 95% for copper and 84-92% for cobalt.
In conjunction with the completion of metallurgical testwork, the company says baseline environmental studies are well advanced to facilitate the permitting process for potential development.
The study was completed to an overall +/-30% accuracy using the key parameters and forecast assumptions, and has warranted the start of a follow-up Prefeasibility Study (PFS), with the aim of realising an economic return from the nickel sulphide project.
Speaking on the Scoping Study, Future Battery Minerals Executive Chairman, Mike Edwards, says: “We are extremely pleased with the positive scoping study results and see this as a significant step forward in de-risking the Saints Nickel Project. When the company commenced the study, the aim was to understand the economics of the existing resource and the potential to commercialise and fund further exploration from the base of underground development.
“The free cash flows generated by a simple and short-term underground mining operation of the existing high-grade resource now provides the company with confidence…”
The free cash flows generated by a simple and short-term underground mining operation of the existing high-grade resource now provides the company with confidence to undertake a Prefeasibility Study and to continue exploration work. However, the project provides substantial upside if current nickel prices persist or if exploration successfully discovers further resources at depth to potentially extend the life of mine.”
The company also notes it has developed a mining strategy for the St Patricks and St Andrews stopes, which comprises several key factors. These factors include current corporate structure of the company, size of the defined resource, general thicknesses of identified lodes, modelled grades within lodes, and preliminary desktop geotechnical assessment.
However, it is reported no detailed mining method comparison studies have been completed at this stage of the study, and that based on the geotechnical analysis and mineral resource geometry cut and fill, as well as short lift open stoping – long hole benching would be the most suitable methods for the development of study metrics.
Future Battery Minerals is an ASX-listed company actively exploring for a green future by unlocking value from a strategic future minerals portfolio. The company is focused on exploration for key battery minerals lithium, nickel, and copper in stable pro mining jurisdictions.
The Saints Nickel project is wholly owned by Future Battery Minerals and is situated about 65km northwest of the township of Kalgoorlie and 7km east of the Goldfields Highway in Western Australia. The project comprises 2 mining leases covering an area of about 20km-square of prospective Archaean greenstone belt geology within the Eastern Goldfields province of the Yilgarn Craton.
Images: Future Battery Minerals Ltd
