Giga reports PFS results for the Turnagain Ni-Co project, with post-tax IRR of 11.4% and NPV of $574M
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The company said the PFS results demonstrated “positive economics” of the project, with pre-tax IRR and NPV of 11.1% and $717M (7% discount rate) and post-tax IRR and NPV of 11.4% and $574M at a long-term nickel price of $9.75/lb, with 78% payability for nickel in concentrate.
According to the company, the project has a long operating life, with annual production averaging 37,288 t/y Ni+Co in concentrate over the nominal full operating rate period (Y3 – 28) based on a 30-year project life with an extremely low strip ratio of 0.4 tonnes waste per tonne ore.
Importantly, the company said the project will deliver high-grade nickel sulphide concentrate with no significant deleterious impurities, into “commercially proven processes” such as pyrometallurgical smelters or hydrometallurgical refining using pressure oxidation facilities.
CEO Mark Jarvis said the PFS is a “significant step forward” for the project, “which will allow us to advance discussions with potential strategic investors.”
“The success of the extensive geometallurgical studies conducted by Blue Coast Research gives confidence in the metallurgical response of the entire deposit. This engineering study shows that the Turnagain project has a low-risk flow sheet that will consistently and predictably deliver a high-grade, high-quality concentrate similar to concentrates successfully treated by nickel processing companies for decades,” he added.
Giga Metals Corporation’s core asset is the Turnagain project, located in northern British Columbia, which contains one of the few significant undeveloped sulphide nickel and cobalt resources in the world. Turnagain is held in Hard Creek Nickel, a subsidiary owned 85% by Giga Metals Corporation and 15% by Mitsubishi Corporation.
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