Platinum and nickel producer Braemore Resources Plc (BRR.L) (BREJ.J) said on Tuesday its Leinster nickel tailings project in Australia was viable as studies showed high sulphur recovery rates and low processing costs, sending its shares up about 14 percent.
Braemore said project viability was confirmed at average production rate of 12,500 tonnes per annum of nickel as intermediate product, which is one of the main determining factors for capital costs.
The company expects total operating costs of $3.85/lb to $4.07/lb, with preliminary capital expenditure of $415 million to $444 million.
The acid plant is expected to cost $181 million to $185 million depending on the scale of the plant and the sulphur source, it said.
The company said capital and operating costs could be reduced further through the continued refinement of the project.
At 1222 GMT, Braemore shares were up 0.23 pence at 1.9 pence on the London Stock Exchange. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)
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