Initial capital costs to build the mine, processing facilities and primary and secondary infrastructure are forecast at US$579 million.
Canadian explorer Northcliff Resources (TSX:NCF) has received a final key federal approval for its Sisson tungsten-molybdenum project in New Brunswick, Canada.
The green light came after extensive consultation led by federal agencies with First Nations and the public. During the process, designs for the placement of the tailings facility, the tailings technology to be used and the fish habitat compensation plan for the project were thoroughly reviewed.
“Completion of the Metal and Diamond Effluent Regulation Schedule 2 amendment represents an important milestone toward project development,” said Northcliff President and CEO Chris Zahovskis.
Sisson hosts a 334.4 million tonne proven and probable mineral reserve containing 22.2 million metric tonne units of tungsten trioxide and 154.8 million pounds of molybdenum at a US$8.83 per tonne net smelter return cut off, as per a positive feasibility study published in 2013. Life of mine is set at 27 years.
“The outlook for tungsten remains robust for the mid to long term and new, western-based tungsten projects are needed to meet forecast demand growth,” the company said.
Northcliff, which began work at Sisson nine years ago, has already received environmental impact assessment approvals from both the provincial and federal governments.
Mine construction is estimated to take two years, with initial capital costs to build the mine, processing facilities and primary and secondary infrastructure forecast at US$579 million, including a 15 percent contingency. A construction decision is expected to be made between 2019 and 2020.
The company is now focusing on securing construction and operating permits, offtake agreements and project financing. Northcliff is also looking to update Sisson’s feasibility study this year.
On Wednesday (July 10), shares of Northcliff were up 7.69 percent, trading at C$0.70.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.