EXPLORATION & DEVELOPMENT

Odysseus gains more weight for Western Areas

CONTAINED nickel reserves have passed 200,000 tonnes at Western Areas’ developing Odysseus project following the addition of the AM6 deposit.

Odysseus gains more weight for Western Areas

The deposit, which is directly adjacent to the main Odysseus mining areas, is estimated to have a probable ore reserve of 2.1 million tonnes grading 2.2% nickel for 47,100t of nickel.

That means the project's total reserves now stand at 10.3Mt at 2.1% nickel for 212,000t of contained nickel.

Pre-production capital estimates for AM6 are $30 million and total sustaining life of mine capital is estimated at $81 million. AM6 pre-production capital expenditure is currently planned after the start of production and cashflow at Odysseus. 

First production of nickel in concentrate from Odysseus is expected late in 2022, with the operation expected to yield an average of about 13,000t per annum of contained nicked.

However, output from 2024 to 2031 has previously been put at an annual average of 14,600t.

Shares in Western Areas were up 6% to A$2.31 in morning trade, capitalising the nickel miner at $635 million.

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