Magna Mining (NICU.V) released an updated resource calculation on its flagship Denison project in Sudbury, Ontario. The entire resource is contained in the indicated resource category andconsists of an open pit and underground component. As you can see below, the open pit contains just under 17 million tonnes at an average grade of 1.08% Nickel-Equivalent with approximately half of that grade effectively represented by nickel.
The underground resource has a grade that’s approximately twice as high. The 14.5 million tonnes at an average grade of 2.07% NiEq represents a gross rock value of just under US$400/t.
This makes the recent acquisition of the Lonmin Canada assets a pretty good deal for Magna Mining as it has a permitted mine and mill site at Shakespeare. A new technical study will investigate the potential synergies between Shakespeare and the past-producing Crean Hill mine on the Denison project.
Disclosure: The author has no position in Magna Mining. Please read our disclaimer.
