Australian Mines Limited - Environmental Licences granted for mining operation at Sconi
Having now secured all the necessary approvals and licences to commence a full-scale mining operation at Sconi, Australian Mines (ASX: AUZ) finds itself uniquely positioned with the only Australian scandium-cobalt deposit able to go into immediate production. The Pre-Feasibility Study completed on the world-class Sconi ore body confirmed it has the potential to produce on average 5,250 tonnes of nickel, 700 tonnes of cobalt and 68 tonnes of scandium per annum for at least the next 20 years.
- Environmental Licence granted by the Queensland Government
- Mining Lease already granted over the Sconi scandium and cobalt deposit
- All licences and approvals now in place allowing Australian Mines to advance its development plans for a mining operation at Sconi
- Annual production of 700 tonnes of cobalt, 5250 tonnes of nickel and 68 tonnes of scandium with a minimum 20-year mine life indicated by the Pre-Feasibility Study
- Final Definitive Feasibility Study currently in progress
Managing Director, Benjamin Bell commented, “Having now secured all the necessary approvals and licences to commence a full-scale mining operation at Sconi, Australian Mines finds itself uniquely positioned with the only Australian scandium-cobalt deposit able to go into immediate production.
“The Pre-Feasibility Study completed on the world-class Sconi ore body confirmed it has the potential to produce on average 5,250 tonnes of nickel, 700 tonnes of cobalt and 68 tonnes of scandium per annum for at least the next 20 years. This positions Australian Mines to be a significant supplier of scandium in a growing global market – from one of the lowest risk mining jurisdictions in the world”
“Our production of both nickel and cobalt sulphates from Sconi will also ensure that we are well-positioned to participate in the rapidly growing electric vehicle battery market. With all mining and operational approvals now in place, Australian Mines is set to become the first scandium-cobalt mine in production in Australia.”
“Test work completed as part of the PFS has indicated that Sconi will not only produce a premium scandium oxide product, but will also benefit from economic production and recovery of nickel and cobalt sulphates through the application of proven, off-the-shelf processing equipment and technology, which further supports the fast-tracking of our project development plans.
Australian Mines Limited (“Australian Mines” or “the Company”) is pleased to announce it now has in place all the necessary approvals and licences for the future development of a mining and processing operation at the Sconi Scandium-Cobalt Project in northern Queensland.
Ahead of the outcome of a Definitive Feasibility Study (DFS), which is currently in progress, Australian Mines has obtained the necessary State Environment Licence required to carry out a mining operation at Sconi as well as the corresponding licence covering the operation of a processing plant at Sconi.
With the Environmental Approval in place for the mining and processing operations, and the deposit being contained within an existing Mining Lease, Sconi is now the most advanced scandium project in Australia(1) and effectively development-ready once the optimal pit design and annual production schedules are confirmed through the current DFS.
Anticipating a positive outcome of the Definitive Feasibility Study at Sconi, Australian Mines has commenced discussions related to securing the necessary construction funding for this project. Such discussions are at an early stage and the Company will continue to keep shareholders updated as these negotiations progress.
Australian Mines has attracted a high level of professional investor interest in its scandium and cobalt assets during the March quarter, raising $4.3 million via the placement of fully paid ordinary shares and the issue of unsecured convertible notes with the assistance of United Kingdom-based Arlington Group Asset Management(2).
Using funds from the recent capital raising, the Company is scheduled to process a bulk tonnage sample of ore material from Sconi, as part of the DFS, to generate samples of both the scandium oxide powder as well as the nickel and cobalt sulphate products to further Australian Mines’ current discussions with a number of potential off-take partners.
Australian Mines is also undertaking a fully underwritten non-renounceable entitlement offer to existing shareholders to raise an additional $2 million and provide an opportunity for all current shareholders to increase their exposure to the emerging scandium and cobalt market. The offer period opens today and is currently scheduled to close at 5pm (AEST) on Friday March 31(3).
(1) Unlike Australian Mines & Metallica Minerals’ Sconi Project, Platina Resources Limited (ASX: PGM) is yet to obtain a Mining Lease over the Owendale project in NSW or Environmental approval from State Government; Clean TeQ Holdings Limited (ASX: CLQ) is also yet to have their Mining Lease granted over the Syerston project in NSW nor does CLQ presently have development approval from State Government; and Scandium International Mining Corp (TSX: SCY) is yet to obtain both a Mining Lease over the Nyngan project in NSW as well as necessary environmental approval from the State Government.
(2) Australian Mines Limited, Significant capital raising to fast-track the development of Australian Mines’ two core scandium-cobalt assets, released 21 February 2017.
(3) Australian Mines Limited, Significant capital raising to fast-track the development of Australian Mines’ two core scandium-cobalt assets, released 21 February 2017.
