Odysseus project update – Post DFS work on pland and budget

09-Jan-2019 Intellasia | | 11:52 AM Print This Post
Odysseus project update – Post DFS work on pland and budget

Western Areas Ltd (“Western Areas” or the “Company”) is pleased to announce that the early capital works and post DFS planning activities at the Odysseus Project (ASX release 22 October 2018) are progressing as planned and to budget, with several key recent milestones achieved.

 

* Schlumberger submersible pump installed to accelerate dewatering

* Decline rehabilitation mining contract awarded to Barminco Ltd with mobilisation to commence mid-January 2019

* Construction of all surface water management ponds and high voltage electrical reticulation complete and operational

* Existing 520 person camp upgraded to cater for all staff required during the initial works

* Purchase of shaft headgear complete with planning for freight from South Africa to Perth underway

* Optimisation studies, including technical studies, for mining the AM5 and AM6 orebodies (in addition to DFS mining volumes) progressing well

 

Western Areas Managing Director, Dan Lougher, said that the Company is pleased to be on track and on budget with the early capital works construction and post DFS activities at Odysseus.

“Odysseus is an important growth asset for Western Areas and should be one of the few new global nickel sulphide operations scheduled to come online as the forecast uplift in nickel demand for electric vehicles impacts the market in the 2022 timeframe. To realise this potential, our focus now turns to the next phase of activity related to establishing the underground mine infrastructure,” Mr Lougher said.

“In addition, Western Areas is continuing to work on the planned optimisation studies as outlined in the DFS announcement. It is important to note that the DFS did not include the 57.6kt nickel Mineral Resource contained in the adjacent AM5 and AM6 deposits and the potential to mine ore from these deposits will give the project both upside and optionality within the mining production sequence if required.

“The Odysseus Project is a robust project and the Company is excited to move into the next phase of project construction. The capital outlay for the coming years is expected to be funded from the Company’s cash reserves, with significant capital not required until FY22 and FY23,” Mr Lougher said.

To view the full ASX Announcement please click here.

 

(Source: Media releases)

 


Category: FinanceAsia

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