Nico Resources (ASX:NC1) reports the results of the Prefeasibility Study (PFS) for its flagship Wingellina Nickel-Cobalt Project in Western Australia shows it could generate up to $80 billion in revenues over the current 42-year reserve.
Once operational, the Tier 1 ‘world-class’ project will produce sustainable green nickel and cobalt for the electric vehicle (EV) and energy storage industries for a minimum of 42 years.
Project capex is $2.9 billion and more than 1,250 construction jobs are expected to be created.
With a base case post-tax net present value (NPV) of $3.34 billion and a payback period of just 4.9 years, Nico reports Wingellina will be a multi-generational project with the potential to be one of Australia’s largest nickel-cobalt mines with a production of about 40,000tpa of contained nickel and 3,000tpa of contained cobalt based on current ore reserves.
Commenting on the company’s detailed PFS study, Nico Managing Director Rod Corps says: “We are delighted to release such a robust PFS which confirms Wingellina as a globally significant nickel and cobalt asset, generating $60 billion to $80 billion in revenues over the current 42-year reserve.
“We are delighted to release such a robust PFS which confirms Wingellina as a globally significant nickel and cobalt asset”
The study outlines a robust top-tier, low-cost, long-life operation producing circa 40,000 tonnes of nickel and 3,000 tonnes of cobalt per year for over 40 years based on the current reserve only. The project can deliver excellent cash flows, with an exceptional 3-4 year payback period and a post-tax NPV of $3 billion (base case) – $6 billion (spot price).
We are also very pleased to incorporate the use of renewable power sourced from wind and solar within the PFS as we move along our pathway to net zero emissions. Wingellina remains Australia’s largest undeveloped nickel-cobalt reserve of 168.4Mt at 0.93% Ni, 0.07% Co and a global resource of 182.6Mt grading 0.92% Ni, 0.07% Co which provides for an incredible resource to reserve conversion of 92% confirming the quality of the resource.
We would like to acknowledge the support we have received from the Ngaanyatjarra lands people and the EPA and other government agencies in securing many of the key regulatory approvals and agreements required to build this operation. The company looks forward to working with the various government organisations and stakeholders to finalise the outstanding ancillary permits and approvals as we undertake and complete the Definitive Feasibility Study.”
The PFS was completed by engineering firm Worley Services.
Write to Adam Orlando at Mining.com.au
Images: Nico Resources Ltd
