In October 2007, Oriel announced the results of its extensive comparative analysis of all appropriate technologies for the development of the Shevchenko. The Company chose to proceed with continuous atmospheric tank leach technology, as it provided significantly better economic and technical performance compared to the other technologies.
Leach tests give up to 90% nickel recovery on screened and upgraded Shevchenko ores;
- Favourable acid consumption rates in testwork;
- Sulphuric acid readily available at competitive rates from Glencore International AG (“Glencore”), sourced from Kazzinc operations, Ust-Kamenogorsk, Kazakhstan;
- Oriel to implement Phase 1 commercial development of Shevchenko to produce a nickel mixed hydroxide product (“MHP”);
- Low operating costs – expectation is that given the low cost availability of acid and the favourable leach dynamics, cash operating costs will be in the 2nd quartile of the world’s nickel producers cost curve;
- Construction of Phase 1 commercial processing expected to begin Q2 2008, or as soon as practicable after completion of relevant engineering studies;
- Phase 1 commercial scale production of a nickel mixed hydroxide product (“MHP”) aimed to commence H2 2009.
Baran Engineering & Projects Ltd., a subsidiary of Baran Group Ltd. a global provider of engineering, technology and construction services, (“Baran”) has been selected as Project Managers and will work with Oriel on finalising capital estimates during November 2007 and to implement Phase 1 commercial development.
