After promising results from production in its fourth quarter of 2011, First Nickel is anticipating moving to commercial production by mid-2012.
In November, the company surpassed 12 months without a lost time incident, across all employees and contracts, which the company described as a “major achievement for a development project.”
During the fourth quarter of 2011, First Nickel shipped 21,717 tonnes of ore to Xstrata for processing and had an unrestricted cash balance of $25.9 million as of December 31.
“Our safety record and the successful execution of the Lockerby Depth Project are central to the strategy of the company,” Thomas Boehlert, First Nickel president and CEO, said in a news release. “We have recommenced production at Lockerby and expect the mine to be in full production later this year.”
The company is continuing exploration activities at its other Ontario properties, and is looking to add to its base metal portfolio by acquiring promising exploration properties and operating mines, Boehlert added.
In 2012, the company anticipates the production of 6.3 million to 7.4 million pounds of payable nickel, with total cash production costs estimated at $56.2 million to $61.4 million.
Once the Lockerby Mine reaches full production, it is expected to produce at a rate of approximately 10 million pounds of nickel and approximately seven million pounds of copper annually.
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