Atlantic Nickel plans 2020 production at Santa Rita in Brazil

Atlantic Nickel has updated the resource estimate for its wholly owned Santa Rita nickel-copper-cobalt restart project in Bahia, Brazil.

Based on a 30,785 meter infill drill program, updated open-pit measured and indicated resources stand at 59.17 million tonnes grading 0.33% nickel sulphide and 0.11% copper.

An additional 1,958 meters of diamond drilling was completed on the resource area for metallurgical testing, and geometallurgical modelling is ongoing.

The latest mineral resource will form the basis of an updated mine plan, and commercial production is expected to restart in 2020. Santa Rita has an expected initial mine life of eight years.

Mirabela Nickel operated the mine for six years before putting it on care and maintenance in 2015.

Atlantic Nickel expects to release an updated reserve statement in the first quarter of next year.

The project is forecast to fall within the second quartile of the cost curve.

Mining has resumed on site with over 2 million tonnes blasted and hauled to date.

Plant commissioning started earlier this year, with testing of the primary crusher and 20,000 tonnes of stockpiled ore, and concentrate is now being produced.

In addition, the company has completed 75,500 meters of diamond drilling below the open pit, and the drilling has confirmed the continuation of sulphide disseminated mineralization.

Highlights include 124 meters of 0.8% nickel sulphide and 0.09% copper starting at 397 meters and 96 meters of 0.93% nickel sulphide and 0.15% copper starting at 616 meters.

A number of the deeper holes have intercepted massive and semi-massive sulphide mineralization below the area of disseminated sulphides, which the company says suggests a change to the geological model. These deeper sulphides have returned an intercept of 5 meters of 3.4% nickel sulphide starting at 1,164 meters. The deeper mineralization remains open on strike and at depth with additional step-out drilling planned.

The results of this diamond drill program will be used as the basis of an updated mineral resource estimate and a preliminary economic assessment featuring a potential sub-level caving underground operation.

“The results from the deep diamond drilling below the open pit mineral resource support Atlantic Nickel’s potential towards a long-life operation beyond the open pit,” commented Paulo Castellari, Atlantic Nickel’s CEO. “I am also excited about the exploration potential both on the mining lease, on our extensive exploration land package around the operation. There are significant surface targets our teams will be investigating and drill testing over the coming 12 to 18 months. The addition of an open-pit satellite resource could prove very valuable to the operation.”

Appian Capital Advisory LLP, a private equity firm based in London, U.K., acquired Atlantic Nickel in 2018.