19/04/2013 - 14:12

Metals X signs SNC-Lavalin for DFS

19/04/2013 - 14:12

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Metals X signs SNC-Lavalin for DFS
An artist's impression showing the deposits at Metals X's Wingella nickel-cobalt project.

Diversified explorer Metals X has signed SNC-Lavalin Australia as lead engineer for a definitive feasibility study at its Wingella nickel-cobalt project in the north-east of the state.

Metals X has completed a feasibility study in 2008 for the project, flagging a minimum 40-year mine life with annual production of 40,000 tonnes of nickel and 3,000 tonnes of cobalt.

Capital cost estimates came in at $2.3 billion in the 2008 report.

Metals X said it was currently finalising its submissions for environmental approval for the project.

Metals X said it would conduct the DFS with SNC Lavalin in collaboration with global engineering and construction giant Samsung C&T, which it signed a memorandum of understanding with in September last year.

It is expected that Samsung C&T will be awarded an engineering, procurement and construction deal for the project once the DFS is complete.

“This is a significant step in the development of the massive Wingella nickel-cobalt project,” Metals X chief executive Peter Cook said.

“Further to the recently-signed MOU with Samsung, ongoing discussions with additional potential strategic, financial and banking partners continues to highlight the strong interest in the project, which is currently only one of a diminishing number of globally-significant long-life nickel projects yet to be developed.”

Mr Cook shrugged off current volatility in nickel markets, saying the development was a long-term prospect.

At close of trade today, Metals X shares were down 4.17 per cent, trading at 11.5 cents. 

 

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