First Nickel plans to resume production at its Lockerby mine in Sudbury, aiming to produce 10 million pounds of nickel and seven million pounds of copper per year by mid-2012.
The company is currently in the process of completing its recommissioning phase, which involves the refurbishment of mine conveyances, the current mobile fleet and equipment, and the installation of a new waste/ore handling system on the 5100 level, which will be ready for commissioning in early May.
J.S. Redpath has been contracted to complete a ramp and lateral and vertical development at the 7000 level. Work is set to begin in May.
“In the last few months the Lockerby team has focused its efforts to ready the mine for the restart,” said chief operating officer Gerry Bilodeau in a news release. “Engaging J.S. Redpath Limited, a company we know well and respect, is one of the final major milestones needed to allow us to begin advancing our development program later this spring.”
Last September, the company received a bridge loan of US $5 million from Resource Capital Fund IV L.P. and completed an equity issue for gross proceeds of $28.7 million in November.
No sales revenue was recorded in 2010.
The company recorded only one month of sales revenue for the 2009 fiscal year as Lockerby was placed on care and maintenance in October 2008.
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