Sirius Resources NL (ASX:SIR) announced that it has completed a definitive feasibility study (DFS) for its Western Australia-based Nova nickel project. It indicates that Nova is “technically low risk and economically robust.”

Other highlights include:

• Low C1 cash cost of A$1.66/lb Ni (US$1.50/lb) after by-product credits, better than the scoping study estimate and confirms Sirius in lowest quartile of nickel producers globally
• Low all-in sustaining cash cost of A$2.32/lb Ni (US$2.09/lb), substantially better than scoping study estimate
• Initial 10 year mine life subsequent to development
• Estimated capital cost of A$473 million including a 5% (A$22 million) contingency, in line with the scoping study estimate
• Capital cost now includes extra risk-mitigating measures (eg. a second mobile crusher & automated process control)
• Maiden Probable Ore Reserve of 13.1mt grading 2.1% nickel, 0.9% copper and 0.07% cobalt for a contained 273,000t nickel, 112,000t copper and 9,000t cobalt based on same pricing US$7.44/lb nickel) as used in the scoping study
• Exceptional 93% conversion rate from Indicated Mineral Resource to Probable Ore Reserve reflects the world class quality of Nova
• Probable Ore Reserve is remarkably comparable to the scoping study mining inventory which contained 276,000t nickel (99% conversion rate)
• Life of mine plan contains 285,000t nickel – a 103% conversion from the scoping study mining inventory

Click here to read the full Sirius Resources NL (ASX:SIR) press release.