FNI mine reserves slightly down

Global Ferronickel Holdings Inc.’s (FNI) ore reserves at its Cagdianao site had slightly decreased prompting it to conduct further exploration work.

In a regulatory filing, FNI said ore reserves dipped by one percent to 43.3 million wet metric tons as of October 2019.

“We are planning to conduct further exploration work within the next few years to extend the life of the mine beyond its projected eight years mine life,” FNI president Dante Bravo said.

“We are also studying other potential resource commodities such as limestone and chromite,” he said.

The ore reserves estimate was proven to be viable based on the results of the economic assessment done in consonance with the Philippine Mineral Reporting Code (PMRC).

PMRC sets out the minimum standards, recommendations and guidelines for public reporting in the Philippines of exploration results, mineral resources and ore reserves.

The ore estimate is based on five out of seven deposit areas of the Cagdianao nickel expansion project.

To ensure the optimal utilization of its ore reserves, FNI is considering the early extraction of its low grade ore deposits to take advantage of the upward trend in nickel ore prices.

The Cagdianao expansion project is located within a mineral reservation in the Surigao domain identified as a nickel-iron laterite rich region.

FNI is the second largest nickel producer in the country and among its subsidiaries are Platinum Group Metals Corp., Surigao Integrated Resources Corp., PGMC-CNEP Shipping Services Corp., and PGMC International Ltd.

The company’s nickel project covers over 4,300 hectares in Surigao del Norte, divided into seven contiguous laterite deposits.

FNI is covered by its mineral production sharing agreement for a period of 25 years with a maximum annual production volume of five million dry metric tons.