Giga Metals files Turnagain PEA
2020-11-20 16:44 ET – News Release
Mr. Mark Jarvis reports
GIGA FILES PRELIMINARY ECONOMIC ASSESSMENT
Giga Metals Corp., further to its news release dated Oct. 28, 2020, has filed the associated National Instrument 43-101 — Standards of Disclosure for Mineral Projects technical report for the preliminary economic assessment for its wholly owned Turnagain project in northwest British Columbia. The report is dated Nov. 18, 2020, and can be found under the company’s profile on SEDAR and on the company’s website.
The PEA was prepared by Hatch Ltd. of Vancouver, Canada, with the assistance of Kirkham Geosystems Ltd. (mineral resources), Knight Piesold Ltd. (tailings management), Blue Coast Metallurgy Ltd. (metallurgical testing and process design), Kerr Wood Leidal Associates Ltd. (power supply) and Wood Mackenzie Ltd. (market analysis). Giga is pleased to report that there are no material differences between the key results contained in the PEA and the news release dated Oct. 28, 2020.
The project is estimated to produce nickel in concentrate with a low greenhouse gas footprint (scope 1 and scope 2) of less than 2.5 t/t nickel over the project life. Should electric mining fleet equipment become available in suitable capacities, the use of such a fleet is expected to reduce greenhouse gas emissions to less than 0.7 t/t nickel. At these rates, the carbon-dioxide-sequestering capabilities of the Turnagain tailings may enable the project to be carbon-neutral.
The Turnagain PEA demonstrates the potential for establishing a long-life open-pit mine and mill using conventional froth flotation technology to produce high-grade nickel sulphide concentrate. With a phased implementation to a facility with a throughput rate of 90,000 tonnes per day, annual production is projected to average more than 33,000 tonnes per year nickel (73 million pounds per year) for a project life of 37 years. A summary of the PEA highlights is provided in the included table. The PEA has identified numerous opportunities for project improvement.
TURNAGAIN PROJECT PEA LIFE-OF-MINE RESULTS AND ASSUMPTIONS (U.S. $)
Phase 1 Phase 2 Life of mine
All parameters annual average (year 1 to 5) (year 6 to 20) (year 1 to 37)
except construction and sustaining capital cost average average average
Ore processed (Mt) 15.3 32.7 30.3
Nickel grade (%) 0.260 0.220 0.221
Nickel recovery (%) 57.3 51.6 49.6
Nickel production (t in concentrate) 22,754 37,149 33,215
Cobalt production (t in concentrate) 1,379 2,224 1,962
($/t ore) $9.63 $7.99 $7.89
($/lb Ni) $2.93 $3.20 $3.27
Net operating cost ($/lb Ni) $2.77 $3.04 $3.12
Construction capital cost ($M) -- total $1,381 $532 $1,913
Sustaining capital cost ($M) -- total $274 $1,011 $2,000
Base case nickel price/payability $7.50/lb/78%
Base case cobalt price/payability $22.30/lb/35%
Base case pretax IRR/NPV (8%) 6.3%/($269M)
ESG case nickel price/payability $8.50/lb/78%
ESG case cobalt price/payability $22.30/lb/35%
ESG case pretax IRR/NPV (8%) 9.4%/$242M
Cautionary statements
The PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and, as such, there is no certainty that the PEA results will be realized.
Qualified persons
The technical content of this news release has been prepared and reviewed by Lyle Trytten, PEng, a qualified person under National Instrument 43-101 standards.
About Giga Metals Corp.
Giga Metals is focused on metals critical to modern batteries, especially those used in electric vehicles and energy storage. The company’s core asset is the Turnagain project, located in Northern B.C., which contains one of the few significant undeveloped sulphide nickel and cobalt resources in the world.
We seek Safe Harbor.
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