Heron Resources says it can dramatically reduce capital costs at its Kalgoorlie nickel project by pursuing a smaller-scale plant option, describing the results of a scoping study as a step-change improvement in the economics of the project.
Heron last year engaged Kewdale engineering group Simulus to conduct a scoping study to investigate the feasibility of a 10,000 tonnes per annum nickel plant utilising Simulus's sulphuric acid leaching and recycling process.
The study found the project could be developed for a total capital cost of $356 million, with operating costs of $US3.56 per pound of nickel.
It marks a significant departure from the project envisioned in a pre-feasibility study in 2010.
The 2010 study assumed production of 36,700tpa at a total capital cost of $2.8 billion, with operating costs of $US4.17 per pound of nickel.
The project was then assumed to have a mine life of 35 years but this has been cut to 22 years in the new scoping study.
Heron said the results of the Simulus scoping study were "very encouraging" and the company planned to undertake further feasibility work on the project.
This will include upscaling production in the current study from 10,000tpa to 20,000tpa to assess the impact of economies of scale on operating and capital costs.
It will also commission Simulus to commence front end engineering design for a 1t to 3t/hour pilot plant to treat laterite ore from the project.
Heron last month announced a $15 million plan to merge with NSW-based exploration firm TriAusMin.
The merged entity will have a market capitalisation of around $48.5 million.
