An updated outlook for the Sconi cobalt-nickel-scandium project in North Queensland is predicting a 30-years-plus mine life and revenue exceeding $13 billion.
Australian Mines announced an updated mine plan, ore reserve estimate and financials to the ASX today.
It came after the company announced yesterday that it would be undertaking, by way of a prospectus, a share purchase plan to raise at least $5 million to advance the Sconi project and for general working capital.
- Expanded Mineral Resource at Sconi to support longer mine life of 30+ years
- 69 per cent increase in Total Ore Reserve to 57.30 million tonnes, 17 per cent increase in Proved Ore Reserve to 8.08 million tonnes, 82 per cent increase in Probable Ore Reserve to 49.22 million tonnes
- Additional mine life increases total revenue by 44 per cent to $13.3 billion and total free cashflow increases 93 per cent to $5 billion
Following positive drill results announced earlier this year, the company has been working on refinements to the Sconi mine plan originally released as part of the project’s Bankable Feasibility Study in November 2018.
Australian Mines said input had been provided by global engineering and construction firm Ausenco, specialist mine planning consultants Orelogy, and Simulus Laboratories.
As a result of this work, the planned life of mine for the project has increased from 18 years to at least 30 years.
The project is now estimated to produce 1,405,000 tonnes of nickel sulphate (up 46 per cent), 209,000 tonnes of cobalt sulphate (up 37 per cent) and 1,441 tonnes of scandium over the project life.
The State Government has declared the $1.4 billion Sconi project, near Greenvale, a prescribed project, helping to streamline approvals and fast-track the development.