Toronto-based Royal Nickel Corp, which debuts on the TSX on Thursday, believes it will build the fourth biggest nickel sulphide mine globally in Quebec.
The company's board of directors reads like the pre-Vale who's who of nickel miner Inco, now known simply as Vale.
It includes former Vale VP Tyler Mitchelson as CEO, Scott Hand – former chairperson and CEO of Inco – as chairperson, and Peter Jones, who used to be Inco's COO.
The board even boasts a former commanding officer of the Snowbirds aerobatic squadron and retired lieutenant colonel in the Canadian Air Force, in the form of Tom Griffis.
Royal Nickel's 100%-owned Dumont project, located in the Abitibi mining camp, contained a measured resource of 156-million tons at 0,29% nickel, and an indicated resource of one-billion tonnes at 0,27% nickel.
Testwork at the project began in 2007, which showed encouraging sulphide mineralisation, but poor recoveries, a report by consultants at Micon showed.
Changes to the process plant design significantly improved recoveries.
Minerals Associates built a mini-pilot plant for Royal Nickel this year.
Micon estimated a total capital expenditure of C$3,5-billion for a 100 000 t/day mine and plant, 142,2-million lbs of nickel in concentrate at average cash costs of $3,87/lb for a 25 year project life.
In its prospectus, Royal Nickel said the project would likely begin producing in 2015, reaching full production the next year.
According to Micon, Royal Nickel aimed to complete a prefeasibility study on Dumont next year.
Royal Nickel was selling units and flow-through units comprising shares and warrants, to raise C$45-million.
Nickel was selling for $24 785/t to cash buyers on the London Metals Exchange on Tuesday, compared to $17 000/t one year ago.
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