Investment Opportunity
The Mt Thirsty Ni-Co deposit is a unique deposit which is differentiated from dry laterite deposits in W.A. by mineralogy. Nature has performed the process of oxidation and contaminant removal thus metallurgical reduction utilizing SO2 is a low capital cost entrée to nickel and cobalt production.
The financial models for Mt Thirsty assume consensus Ni pricing and a modest Co price. Operating costs reflect the current market as do the capital estimates. Like any mining project the financial return is most sensitive to grade, recovery and commodity price (all related). The financial models target the lower end of the grade and recovery range. The Mt Thirsty deposit, although not large, has the potential to produce strong cash flow and margins. Toll treatment is a low risk operating strategy should it be available whilst reduction treatment is a relatively low capital high return option when compared with conventional HPAL project in Australia. Mt Thirsty is geographically located within the Norseman mining precinct which has operated, uninterrupted for over 100 years and is both supportive and familiar with the benefits mining operations on the local community and economy.
There are no known impediments to the development of the Mt Thirsty project.
The Norseman community has a rich mining pedigree however operating margins have been relatively poor since 1987 thus community and government support for the project is expected to be good.
