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.
