Posted on 03 Nov 2022
Australian miner Widgie Nickel has completed its maiden scoping study at the Armstrong deposit in Western Australia, demonstrating “attractive economics” within Widgie’s overall global resources of 168,000 tonnes of nickel, Kallanish learns.
The Armstrong mineral resource supports a potentially profitable mining outcome exploiting between 500,000 t and 560,000 t at 1.9% nickel (9,400 t nickel and 10,400 t nickel) from shallow mining depths of between 80 metres and 300 m below surface.
At current spot assumptions of $22,000/t nickel and AUD/USD exchange rate of 0.63 Armstrong is expected to recover free cash flows between AUD 67.8 million ($43.4m) and AUD 68.7m.
At conservative base case assumptions of $18,500/t nickel and 0.70 AUD/USD, the project is still expected to realize free cash flows between AUD 20.8m and AUD 26.4m, the company says.
Widgie’s managing director Steve Norregaard states the scoping study has exceeded expectations, highlighting a low-risk mining operation with strong economics, even at a conservative base case.
"The study ticks off another major milestone in Armstrong reaching production-ready status, and we are already advancing towards a full feasibility with pre-production dewatering activities destined to commence shortly. We look forward to completion of the feasibility early in 2023 with potential further upside to be incorporated into the outcome," he says.
Source:Kallanish
