Make Kitco Your Homepage

Mining News

Giga reports PFS results for the Turnagain Ni-Co project, with post-tax IRR of 11.4% and NPV of $574M

Kitco News

Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(Kitco News) - Giga Metals (TSX.V: GIGA) today announced “positive” results of a pre-feasibility study (PFS) for the Turnagain nickel-cobalt project located in British Columbia, Canada.

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.

 IAMGOLD appoints David Smith as Chair; says Maryse Bélanger retired from the Board

By

Vladimir Basov

For Kitco News

Contact vbasov@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.