Syerston Nickel/Cobalt Mineral Resource Estimate
Updated Resource Estimate demonstrates potential for Syerston to become a leading global supplier of cathode raw materials to the lithium-ion battery industry
Highlights
Update to global nickel/cobalt Mineral Resource Estimate confirms approximately 700 kt of contained nickel and over 110 kt of contained cobalt, making Syerston one of Australia’s largest undeveloped nickel/cobalt resources
Over 92% of the Updated Mineral Resource Estimate is in the Measured and Indicated categories Cobalt grades position Syerston to be one of the largest global suppliers of cobalt outside Africa
Potential to fast track development with key work programmes, infrastructure and permits already in place - prior feasibility study completed; Project located adjacent to existing road and rail line; water allocation secured; EIS approved; and Development Consent for a 2.5 Mtpa operation granted
Nickel/Cobalt Project Prefeasibility Study (PFS) to be released shortly
The PFS will assess potential for a 1.5 - 2.5 Mtpa mining operation to produce high purity nickel sulphate and cobalt sulphate products to supply the global lithium-ion battery industry
The Project has the potential to generate significant scandium by-product credits, opening options for a step change reduction in scandium oxide production costs
The low acid consumption of this project compared to other nickel/cobalt laterites like those in WA, which I've pointed out in a previous post after I read it in a student's PhD thesis, is the key defferentiator of this project. Good too see this confirmed in the announcement:
"In particular, it is a limonitic deposit consisting predominantly of goethite (high iron, low clay) that is low in acid-consuming elements such as calcium and magnesium. Extensive metallurgical and leaching testwork undertaken as part of the previous feasibility studies demonstrated that the limonitic nature of the ore results in low acid consumption. As sulphuric acid is typically a major operating cost for laterite operations, a low acid consuming ore may provide significant operating cost advantages."
Another key benefit that is discussed in the announcement and which will have a significant impact in the PFS numbers I'm sure is the much better rheology (flow rates) that this project has over most other nickel laterite projects.
"The limonitic nature of the ore also results in a low viscosity slurry. A low viscosity leachate slurry ‘flows’ better through the process, allowing for more concentrated solutions and therefore, lower overall volumes of throughput. This provides potential for smaller sized plants."
"Clean TeQ has commenced discussions with a number of key participants in the lithium-ion battery industry to assess potential demand for nickel and cobalt sulphate from the Syerston Nickel/Cobalt Project. These participants include precursor and cathode manufacturers, LiB cell and battery manufacturers and end users of LiB batteries, as well as metals/chemicals traders. To date the Company has received strong initial expressions of interest for offtake of Syerston nickel sulphate and cobalt sulphate products."
