TORONTO, Jan. 15, 2018 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") expects to undertake a series of initiatives during 2018 to
position the company to make a decision to begin construction of
the Dumont Nickel-Cobalt Project, which contains the world's
largest undeveloped reserves of both cobalt and nickel, in 2019.
With many market participants expecting explosive growth in nickel
and cobalt demand from the electric vehicle market over the coming
decade, RNC continues to be approached by a number of potential
strategic investors, offtake partners and financiers who could
provide the financing required to begin construction.
"The Dumont Nickel-Cobalt Project, one of the world's premier
battery metals projects, contains the world's largest undeveloped
reserves of both cobalt and nickel. It also contains the
2nd largest nickel reserve and the 8th
largest cobalt reserve of any deposit in the world," said
Mark Selby, President and CEO of RNC
Minerals. "Dumont is the only deposit of this scale that is
not currently in operation and not owned by a major mining company
(the other eight largest deposits are owned by companies that
include Glencore, Vale, Norilsk, Sumitomo Corp, and Jinchuan – see
below Tables 1 and 2). Given market concern regarding future cobalt
and nickel supply for electric vehicles, and nickel prices at
the $12,000-$13,000/t
($5.50-$6/lb) level, RNC believes it is well-positioned
to significantly advance Dumont in 2018."
Selby continued, "In our view, Dumont compares
favourably with many Australian nickel-cobalt projects, which
have seen significant increases in market value during 2017. Dumont
contains larger nickel and cobalt reserves, has completed a
feasibility study, is fully permitted, and is a sulphide deposit
rather than a laterite deposit, which allows the recovery of nickel
and cobalt using proven, conventional milling technology rather
than the more technically challenging pressure acid leach
(PAL/HPAL) technology."
As is typical with any mining project, any final construction
decision in 2019 would be subject to financing and market
conditions at that time.
Dumont Highlights1:
- Large scale, long life nickel and cobalt production -
33-year life with over 1 billion tonnes of reserves. Potential
for much longer life/future expansions from equally large
resource.
-
- Initial annual production of 33 ktpa (73 million pounds) of
nickel and 1.0 ktpa of cobalt (2.3 million pounds) contained in
concentrate
- Expanded in year five to an annual average of 51 ktpa (113
million pounds) of nickel and 2.0 ktpa of cobalt (4.3 million
pounds)
- World's highest grade (29%) nickel concentrate - suitable for
feed to both the stainless steel and battery market.
- Dumont proven and probable reserves consist of 1.18 billion
tonnes of ore containing 3.15 million tonnes of nickel (6.9 billion
pounds) and 126,000 tonnes (278 million pounds) of
cobalt.2
- Shovel-ready: feasibility study and permitting complete. Strong
community support.
- Conventional open pit, mine-mill operation using proven
sulphide flotation.
- Structurally low-cost operation: significant infrastructure in
place, low strip ratio (1.1:1).
- Excellent jurisdiction: Abitibi region of Quebec with significant labour and capital
infrastructure.
- Significant additional value potential from the roasted nickel
concentrate approach advanced by RNC.
- RNC currently has a 50% interest in the nickel joint
venture (with Waterton) that owns Dumont.
1.
|
See "Dumont Nickel
Project NI 43-101 Compliance" statement below.
|
2.
|
Reference is made to
table 15-1 in section 15 of the Technical Report on the Dumont Ni
Project, dated July 25, 2013, available at www.rncminerals.com and
under Royal Nickel Corporation's profile on
www.sedar.com
|
Table 1: World's Largest Proven and Probable
Contained Cobalt Reserves1
* Denotes
Development Stage Projects
|
|
|
|
|
Rank
|
Operation /
Project
|
Contained
Cobalt
Reserves (kt)
|
Ownership
(main)
|
Location
|
1
|
Mutanda
|
1,144
|
Glencore
Plc
|
DRC
|
2
|
Kamoto
|
658
|
Katanga Mining
Ltd
|
DRC
|
3
|
Tenke
Fungurume
|
565
|
China Molybdenum Co.
Ltd
|
DRC
|
4
|
Punta
Gorda
|
341
|
Cubaniquel
|
Cuba
|
5
|
Jinchuan
|
161
|
Jinchuan
Group
|
China
|
6
|
Murrin
Murrin
|
150
|
Glencore
|
Australia
|
7
|
Ambatovy
|
147
|
Sumitomo /
Kores
|
Madagascar
|
8
|
Dumont*
|
126
|
RNC /
Waterton
|
Canada
|
|
|
|
|
|
11
|
Clean TeQ
Sunrise*
|
104
|
Clean TeQ
Holdings
|
Australia
|
1. Source: S&P
Global Market Intelligence
|
To view Table 1 in chart format please click:
http://files.newswire.ca/1573/Table_1_Chart_RNC.pdf
Table 2: World's Largest Proven and Probable Contained
Nickel Reserves1
* Denotes Development
Stage Projects
|
|
|
|
|
Rank
|
Operation /
Project
|
Contained
Nickel
Reserves (Mt)
|
Ownership
(main)
|
Location
|
1
|
Taimyr
Penninsula
|
6.4
|
Norilsk
|
Russia
|
2
|
Dumont*
|
3.1
|
RNC /
Waterton
|
Canada
|
3
|
Weda Bay
|
2.8
|
Eramet
|
Indonesia
|
4
|
Murrin
Murrin
|
2.2
|
Glencore
|
Australia
|
5
|
Jinchuan
|
2.1
|
Jinchuan
Group
|
China
|
6
|
Soroako
|
2.0
|
Vale
|
Indonesia
|
7
|
Pomaala
|
1.9
|
PT Antam
|
Indonesia
|
8
|
Vale New
Caledonia
|
1.8
|
Vale
|
New
Caledonia
|
1.
|
Source: Company
Reports, except Weda Bay, Jinchaun, Pomaala and Vale New
Caledonia: Wood Mackenzie February 2015 Global Nickel Mine Summary
Report
|
To view Table 2 in chart format please click:
http://files.newswire.ca/1573/Table_2_Chart_RNC.pdf
Dumont Nickel Project NI 43-101 Compliance
Unless otherwise indicated, RNC has prepared the technical
information contained in this news release ("Technical
Information") based on information contained in the feasibility
study dated July 25, 2013 relating to
the Dumont Nickel Project available under RNC's company profile on
SEDAR at www.sedar.com. The feasibility study was prepared by or
under the supervision of a qualified person (a "Qualified Person")
as defined in NI 43-101 – Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators. Readers are
encouraged to review the full text of the feasibility study which
qualifies the Technical Information. Readers are advised that
mineral resources that are not mineral reserves do not have
demonstrated economic viability. The feasibility study is intended
to be read as a whole, and sections should not be read or relied
upon out of context. The Technical Information is subject to the
assumptions and qualifications contained in the feasibility
study.
The Technical Information in this news release has been reviewed
by Alger St-Jean, P. Geo., Vice President Exploration of RNC and
Johnna Muinonen, Vice President
Operations of RNC, with respect to the Dumont Nickel Project, both
Qualified Persons under NI 43-101.
About RNC Minerals
RNC is a multi-asset mineral
resource company with a portfolio of gold and base metal production
and exploration properties. RNC's principal assets are a 50%
interest in a nickel joint venture with Waterton that owns the
Dumont Nickel-Cobalt Project located in the Abitibi region of
Quebec, a 100% interest in the
producing Beta Hunt gold and nickel mine located in
Western Australia, and a 30% stake
in the producing Reed Mine located in the Flin Flon-Snow
Lake region of Manitoba,
Canada. Through its stake in Orford Mining Corporation
(TSX-V: ORM), RNC also has interests in the West Raglan and Qiqavik
projects in Northern Quebec and
properties in the U.S. Carolina Gold
Belt. RNC has a strong management team and Board with over
100 years of mining experience at Inco and Falconbridge. RNC's common shares trade on the
TSX under the symbol RNX. RNC shares also trade on the OTCQX market
under the symbol RNKLF.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the liquidity
and capital resources of RNC, production guidance and the potential
of the Beta Hunt and Reed mines as well as the and the potential of
the Dumont development project and Qiqavik, West Raglan,
Jones-Keystone Loflin and Landrum-Faulkner exploration
properties.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of RNC to be materially different from
any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; accidents, labour disputes and other risks of
the mining industry; political instability, terrorism, insurrection
or war; or delays in obtaining governmental approvals, projected
cash costs, failure to obtain regulatory or shareholder approvals.
For a more detailed discussion of such risks and other factors that
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements, refer to
RNC's filings with Canadian securities regulators, including the
most recent Annual Information Form, available on SEDAR at
www.sedar.com.
Although RNC has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and RNC disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
SOURCE RNC Minerals