Hard Creek Nickel gets Turnagain preliminary assessment

Vancouver – Hard Creek Nickel (HNC-V, HNCKF-O) has received the preliminary assessment study for its Turnagain nickel deposit in northern British Columbia.

The report, conducted by engineering firm AMEC, reviews various parameters in advancing the project towards production including resources, geology, metallurgy, infrastructure and preliminary economics.

A base case scenario was modeled whereby a 50,000-tonne-per-day open pit operation would mine about 302 million tonnes averaging 0.174% nickel sulphide, 0.014% cobalt and 0.027% copper over a potential 17-year mine-life with a 0.63-to-1 stripping ratio. Operations would focus on material with a 0.14% nickel sulphide cut-off grade in the initial six years, then dropping to a 0.095% nickel sulphide cut-off for its remaining life. Material between 0.095% and 0.14% nickel sulphide mined in the first six years will be stockpiled for later processing.

At the base case (0.095% nickel sulphide cut-off), Turnagain contains a measured and indicated resource of 184 million tonnes at 0.17% nickel sulphide plus an additional 286 million inferred tonnes grading 0.16% nickel sulphide all mostly contained within the Horsetrail zone.

Plans call for ore to be run through a crushing-milling circuit then concentrated through an onsite flotation circuit. The study also reviews a hydrometallurgical process whereby the concentrate would be reground, pressure oxidized in an autoclave and then leached to produce nickel, cobalt and copper precipitates.

Metallurgical recoveries for nickel, cobalt and copper from the flotation concentrator circuit are estimated at 75-77.5%, 65% and 50% respectively. The hydrometallurgical process is expected to recover about 95% of the nickel, cobalt and copper in the concentrate. Over the life-of-mine, total estimated metals recovered are estimate to come in at 378,223 tonnes (833 million lbs.) of nickel, 26,124 tonnes (57.5 million lbs.) of cobalt and 38,755 tonnes (85.4 million lbs.) of copper.

Capital expenditures estimated are pegged at $867 million with about $495 million being for direct infrastructure costs (power, road, plant, etc.). Total minesite operating cost estimates come in around $9.50 per tonne or about US$3.45 per lb. of nickel over the mine life.

Using metal prices of US$5.25 per lb. nickel, US$10.00 per lb. cobalt and US$1.10 per lb. nickel and a 10% discount rate, the project has a net present value of $85 million. Based on these parameters, a 12% rate of return is projected.

Extension of a provincial power grid along the Highway 37 corridor to Dease Lake would significantly improve the viability of development at Turnagain. AMEC’s report recommends further exploration drilling, mine engineering and metallurgical work prior to proceeding to pre-feasibility.

Hard Creek also recently engaged a Beijing-based financial advisory firm for representation in any prospective business alliances in China.