Annual metal production for years 6–21 would be 98 mil-
lion pounds of nickel and 5.4 million pounds of cobalt. At
25% nickel (contained), Turnagain concentrate is competi-
tive to production of MHP or mixed sulphide intermediate
via the more capital intensive HPAL process and is directly
amenable to NiSO
4
production by hydrometallurgical re-
fining. Turnagain concentrate is on par with the high-grade
concentrate from the Voisey's Bay mine, Labrador.
Wood Mackenzie estimates that for large greenfield
Class 1 nickel projects, a long-term incentive price of US
$12/lb nickel is needed. At US $12/lb., the Giga Metals De-
cember 2011 PEA estimates Turnagain has a NPV of $2.8
billion After-Tax and a 29.5% IRR.
Giga Metals has sold a 2% NSR on future cobalt and nick-
el production to Cobalt 27 Capital Corp. [KBLT-TSXV] for
US $1 million in cash and 1,125,000 shares of KBLT. Funds
were used for Turnagain drilling and to fund a Pre-Feasibil-
ity Study. Engineering studies are underway to lower the
Capex by reducing start-up size. In addition, the NI 43-101
resource estimate is being updated using 2018 drill results.
Giga Metals is advancing the project to feasibility and
will initiate permitting as it works towards a production
decision. The company, which is headed by Mark Jarvis,
CEO, has 53,774,015 shares outstanding.
www.gigametals.com
