Kevitsa is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. The mineral rights to the property were acquired in 2008 and are held by a wholly owned subsidiary of First Quantum. The project is located approximately 142 kilometres north-northeast of Rovaniemi, the capital of Finnish Lapland. The mine is scheduled for commercial production in mid-2012.
| Acquired: |
2008 |
| Resource estimate: |
Estimated measured and indicated resources of 240 million tonnes grading 0.30% nickel; 0.28% nickel sulphide; 0.41% copper; using a nickel cut-off grade of 0.1% |
| Operation: |
- Open pit mine
- Conventional processing
|
| Products |
- Nickel-cobalt-precious group elements (PGE) concentrate grading approximately 12% nickel
- Copper-PGE-gold concentrate grading approximately 28% copper
|
| Average annual production (est.): |
- 10,000 tonnes of nickel
- 20,000 tonnes of copper
|
| Capital investment: |
Approximately $400 million |
| |
|
| Cash cost (est.): |
$2.50 per pound of nickel, net of by-product credits using assumptions of nickel = $6.75/lb; copper = $2.00/lb; Euro/US = 1.3 |
| Mine life (est.): |
32 years |
| Workforce (est.): |
200 employees |
Project Status
First Quantum announced board approval for development of the Kevitsa project in late 2009. The three-year development schedule takes into consideration the seasonal climatic environment within the Arctic Circle.
The current project development is nearing completion with field construction activities 90% complete and pre-commissioning planned to commence in December. Commercial operation is expected to start in mid 2012. Recruitment of operations personnel is ongoing with all managerial positions filled.
Approvals are being actively pursued through the relevant authorities to increase the throughput rate to 7.5 million tonnes per year. With the current estimated measured and indicated resources, this increased rate is expected to lift the annual production to approximately 15,000 tonnes of nickel and 28,000 to 30,000 tonnes of copper while preserving a mine life in excess of 20 years.
History
The Kevitsa deposit was discovered by the Geological Survey of Finland in 1987. It was later acquired by SML (then called Scandinavian Gold Limited), who commenced a feasibility study for the project in 2007. The study was based on an open pit operation mining approximately 5 million tonnes per year of ore, with production of nickel and copper concentrates for sale to local or overseas smelters.
First Quantum acquired SML in June 2008 and commenced an intensive program of resource definition and extension drilling. Drilling focused on using a new geological model that assisted in the definition of a substantial new body of mineralization immediately south of the prior resource.
An updated Resources and Reserves estimate was issued in March 2011.
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To learn more, please see the Annual Information Form, dated March 31, 2011.