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Annual Report 2015 17
Nova Project
Background
The Nova Project is located in the Fraser Range, approximately 120km east of Norseman and approximately 700km east of Perth
in Western Australia.
In July 2012 the Nova Deposit, a magmatic nickel sulphide deposit, was discovered. In February 2013 the Bollinger Deposit, a
dominantly flat lying ore body located immediately to the east of the Nova Deposit, was discovered and connected to the Nova
Deposit by an interpreted feeder zone.
IGO owns 100% of the EL 28/1724 and ML 28/376 tenements which host the Nova Deposit and Bollinger Deposit, comprising the
Nova Project. Mr Mark Creasy, the previous owner of a 30% interest in these tenements, retains a 0.5% net smelter royalty on
any future discoveries made within the boundaries of EL 28/1724 but which fall outside of ML 28/376. No royalty is payable to Mr
Creasy for any production from the Nova Project or any other future production from elsewhere within ML 28/376.
Definitive Feasibility Study
A Definitive Feasibility Study (DFS) relating to the Nova Project was completed in July 2014. The Mineral Resource was updated
as part of the DFS and a maiden Ore Reserve for the Nova Project was established, both in accordance with the JORC Code.
The Mineral Resource estimate comprises 14.3Mt grading 2.3% nickel, 0.9% copper and 0.08% cobalt for a contained 325,000t of
nickel, 134,000t of copper and 11,000t of cobalt.
The Ore Reserve estimate comprises 13.1Mt grading 2.1% nickel, 0.9% copper and 0.07% cobalt for a contained 273,000t of nickel,
112,000t of copper and 9,000t of cobalt.
The Probable Ore Reserve, together with a small proportion (1Mt of ore) of additional mining inventory material, together
constituting the life of mine plan, will underpin an initial mine life of 10 years following a two-year development period. Average
production following project ramp-up will be 26,000tpa of nickel and 850tpa of cobalt in a nickel concentrate and 11,500tpa
copper in a separate copper concentrate.
The planned mine is based on a 1.5Mtpa underground operation with decline access. The principal stoping method will be sub-
level open stoping with paste fill to maximise extraction. Approximately 83% of the planned production will be from sub-level
open stoping with the remaining 17% of production from the longhole echelon retreat stoping method.
Metallurgical testwork results indicate that the ore is amenable to the production of two separate sulphide concentrates via
crushing, grinding and conventional froth flotation, specifically:
•
copper concentrate – 95% recovery to produce a 29% copper concentrate with silver by-product
•
nickel concentrate – 89% recovery to produce a 13.5% nickel concentrate with cobalt by-product
The processing plant will have a 1.5Mtpa nameplate capacity and will comprise conventional crushing, grinding by open circuit
SAG mill followed by a ball mill in closed circuit, and sulphide flotation to produce separate copper and nickel concentrates.
Flotation will comprise open circuit roughing, cleaning and cleaner scavenging. Regrinding on particular streams will be used to
increase liberation and recovery for both circuits.
Power for the site will be generated from an onsite 16 megawatt predominantly diesel-fired power station with solar via a 6.7
megawatt power plant provided by a specialist power generation contractor.
In August 2014, the Nova Mining Agreement was signed with the Ngadju People and shortly thereafter the Nova Mining Lease
was granted by the Western Australian Department of Minerals and Petroleum.