A revised deal between Falconbrige (FL-T) and Finnish minerOutokumpu allows the former to purchase a 100% interest in theMontcalm nickel-copper deposit near Timmins, Ont. Falconbridge previouslyheld the right to only 50% of the project.
In 2000, Falconbridge signed a letter-of-intent with Outokumpu.Falconbridge followed this up by completing a conceptual study. The studysuggests that the 7.02-tonne deposit, which averages 1.46% nickel and 0.71%copper, could produce a total of 5 million tonnes of ore at a rate of750,000 tonnes annually.
The ore would be milled and smelted at the Kidd Metallurgical division.This would be followed by refining in Sudbury to produce 8,000 tonnes nickelannually.
To earn its interest, Falconbridge must pay $4 million up-front, followedby $10 million over the next two years. Outokumpu also requires a productionroyalty.
Falconbridge is carrying out a prefeasibility study. After itscompletion, the company will begin advanced exploration. A full feasibilitystudy will follow.
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