A long term laterite ore Supply Agreement has been signed with Queensland Nickel Pty Ltd, a BHP Billiton group company. The laterite ore will initially be shipped from the Company’s operations at Berong to QNPL’s Yabulu Refinery in North Queensland, Australia. The Supply Agreement is for a 5 year term with an option to extend for a further 5 years at the election of QNPL. Project activities completed include the coastal stockpile drying pad area and associated siltation management system, the assay laboratory and the potable water systems. Designs and costings were completed for the permanent offices, accommodation village, crusher and batch plant facilities, workshop facilities, Dangla Road, Berong airstrip upgrade, and the pedestrian bridge over the Berong River. The design of the trestle conveyor and alternative ship loading options continue.
Permit approvals continue to delay the start of construction of the Dangla Road, a dedicated haul road without community development along its route.
As previously reported, the Company entered into a Mineral Production Sharing Agreement [MPSA No.235-2007-IVB] with the Philippine Government covering the 288 hectare Berong Nickel Project. The current Direct Shipping Operation falls under the MPSA and the associated Special Mines Permit. The Feasibility Study Report for the life-of-mine operations is currently being prepared for submission to the Department of Environment and Natural Resources to enable the “Declaration of Mining Feasibility” for this MPSA area.
A JORC compliant mineral resource was prepared by Snowdens Mining Industry Consultants and released to the market. The measured, indicated and inferred resource within the 288 ha MPSA area is estimated at 9.92 million tonnes at an average grade of 1.55% Ni using a 1% nickel cut-off grade. Drilling within the MPSA area is ongoing and is aimed at delineating additional tonnage.
The assessment of processing options to add value to the large lateritic resources at Berong continued. SNC Lavalin is undertaking this work, and samples of the various ore types have been selected and are ready for shipment to the testing laboratories. Processing options being considered are high pressure acid leaching, atmospheric leaching, heap leaching, ferro-nickel smelting and the Chinese nickel pig iron process.
