Project Summary

The Dumont Nickel-Cobalt Project is one of the world’s largest undeveloped, permitted and shovel ready nickel sulphide deposits.

Dumont is a large deposit located near the town of Amos, in the municipalities of Launay and Trécesson, in the established Abitibi mining camp in the mining-friendly Canadian province of Québec. When in production, it is expected to rank among the top-five largest nickel sulphide operations in the world by annual production – only the mining operations at Norilsk (Russia), Jinchuan (China) and Sudbury (Ontario, Canada), will be larger.

Dumont Expected to Be Among Largest Nickel Sulphide Operations
(RNC 105ktpd (phase II) vs. 2018 production for other projects) (kt/year)


 

The Dumont deposit contains approximately 6.1 billion pounds of nickel in the proven and probable reserve categories (a proven and probable reserve of 1,028 million tonnes at 0.27% nickel) and 9.75 billion pounds of nickel resources in the measured and indicated category (a measured resource of 372 million tonnes at 0.28% nickel and an indicated resource of 1.29 billion tonnes at 0.26% nickel). In the inferred resource category there is approximately 2.9 billion pounds of nickel (500 million tonnes at 0.26% nickel). Once in operation, the mine will produce nickel for over 30 years. Construction and operation of the mine and processing facilities will be made easier by the existence of excellent infrastructure, including roads, rail and access to low-cost power.

Ores from the mine will be processed using proven, conventional methods into a high-grade nickel concentrate, and then transported for further processing elsewhere. The mine will have no acid-generating rock or tailings, which has beneficial implications for environmental management.

Economic Analysis (May 2019)

Parameter

Pre-Tax

After Tax

NPV ($ millions @ 8%)

$1,713

$920

IRR

19.9%

15.4%

 

 

Operating Summary

Production

Units

52.5 ktpd
Year 1-7

105 ktpd
Year 8-19

Life-of-Mine

Year 1-30

Ore Mined1

Mt

252

732

1,028

Strip Ratio

Waste: Ore

1.43

0.86

1.02

Ore Milled

Mt

122

477

1,028

Ore Grade

% Ni

0.33

0.28

0.27

Ni Recovery

53%

47%

43%

Nickel in Concentrate

Ktpa (M lbs)

33 (73)

50 (111)

39 (87)

 

Operating Revenue and Costs

 

Units

52.5 ktpd
Year 1-7

105 ktpd
Year 8-19

Life-of-Mine

Year 1-30

NSR

$/t ore

$27.00

$20.30

$17.75

Mine (ore milled)

$/t ore

$5.33

$4.10

$2.86

Process

$/t ore

$3.98

$3.90

$3.90

G&A

$/t ore

$0.73

$0.40

$0.41

Total Site Costs

$/t ore

$10.04

$8.40

$7.17

Realization

$/lb

$0.15

$0.16

$0.16

C1 Cash Costs

$/lb

$2.98

$3.30

$3.22

AISC

$/lb

$4.19

$3.80

$3.80

1Totals include pre-stripping of 42 Mt, including 13 million tonnes of ore, before mill production commences.
 

Key Assumptions1

Parameter

Pricing

Nickel Price ($ per pound)

$7.75

US$/CDN$ Exchange Rate

$0.75

Platinum Price ($ per ounce)

$1,000

Palladium Price ($ per ounce)

$1,000

Cobalt Price ($ per pound)

$25

Oil ($ per barrel)

$60

  1. Price assumptions for nickel based on average forecasts for group of two third-party nickel industry analysts. Price assumptions for cobalt, platinum and palladium were rounded down based on Consensus Economics Inc. forecasts.