Raglan project optimization and economics

"The historical background to the project dates back to the mid-30s with the discovery of surface sulphide showings in the Cape Smith-Wakeham Bay ultramafic belt. In the mid1950s, orderly exploration commenced with an extensive work program by Asarco, INCO, Lemoine, Falconbridge and Raglan Nickel Mines Ltd. on exploration permits. In 1966, Falconbridge and Raglan Nickel Mines interests merged. Extensive exploration, drilling, under- ground delineation of the Donaldson orebody and the construction of basic infrastructure such as camps, airfield, road links from Douglas Harbour to Donaldson and Katinniq, a distance of 60 km, were completed.Production project design at that time consisted of plans for a 50 000 mt per year nickel mining and concentrating operation, including a 2000 person community and smelter at Douglas Harbour. These plans unravelled in the mid-70s due to high capital costs, poor nickel market conditions and the realization that the Raglan orebodies were not large enough to economically support the construction of green field smelter and refinery facilities for processing Raglan production. Nickel market conditions in the late 70s and early 80swere generally poor, resulting in further delays on production plans.While recognizing the very high potential to discover increased tonnages of high grade(3% Ni) in excess of 20 million tonnes, the project was deferred into the late 80s when a serious re-evaluation of exploration potential occurred and the requirement to prove up additional reserves resulted in an underground exploration program at Katinniq covering the period 1990-1992."