Metallica commissioned Golder Associates in July 2012 to re-tabulate the SCONI Mineral Resources for each deposit, previously Metallica had reported different values for cobalt in the original resource statements for each deposit.
The SCONI resources have been re-tabulated by combining the nickel, cobalt and scandium grades using a new nickel equivalent cut-off grade of 0.7% where
NiEq = Ni + 1.5Co + 0.01 Sc
This formula has been derived using the follwoing commodity prices and recoveries:
Nickel US$10.00/lb and 90% recovery
Cobalt US$15.00/lb and 90% recovery
Scandium US$1,500/kg Scandium Oxide and 90% recovery
As a result of the re-tabulation of Mineral Resources, Metallica's contained nickel resource has increased from 406kt to 467kt (15% increase). In addition, contained scandium resource has increased from 2,175t to 3,827t (76% increase).
Below is the updated resource presented in two parts, the Southern Deposit includes scandium resources whereas the Northern Deposits were not estimated for scandium.
Table 1 Southern Deposits COG Ni Eq 0.7%
Table 2 Northern Deposits COG Ni Eq 0.7%