Activity picks up at Selkirk after 20-yr ‘slumber’

Mbongeni Mguni | Monday April 17, 2023 06:00

Selkirk Mine operated as an underground between 1989 and 2002 when Tati Nickel, then owned by LionOre and government, placed the operation under care and maintenance.

This was due to the depletion of high-grade copper and nickel ores that were accessible via the underground mining method.

LionOre sold Selkirk to Russia’s Norilsk Nickel, which ran the mine between 2007 and 2015, selling it over as part of Tati Nickel to BCL Limited, which at the time was hunting for diversification and expansion opportunities. Selkirk was bundled into BCL’s liquidation in 2016, before Premium Nickel Resources Limited (PNRL) successfully offered P67 million for the operation last year.

According to filings seen by BusinessWeek on Wednesday, consultants engaged by PNRL found that environmental plans were made and authorised in 2008 and 2016 for the potential construction and operation of an open pit within the mining licence area.

“This open pit would extend the life of mine by about five years and would generate five million tonnes of end product per annum,” the consultants said. “If PNRL elects to proceed with the development of the Selkirk project, it is recommended that the updated Environmental Management Plan rely on some of the 2016 and 2008 information, but that new specialist studies and environmental assessments be conducted.”

During its lifespan, Selkirk produced more than one million tonnes of ore containing 2.6 percent nickel and 1.6 percent copper. The last estimate of the resources, done by BCL in 2016, reported 52.2 million tonnes of material at grades of 0.32 percent nickel and 0.31 percent copper under the measured and indicated category.

“The 2016 mineral resource estimate should be considered as historical in nature, as insufficient data verification has been conducted by the qualified persons to verify the tonnages and grades and PNRL is not treating the 2016 mineral resource as a current Mineral Resource estimate,” the consultants said.

Of the nine million Canadian dollar budget, consultants expect much of the funds to go towards updating the geological and metallurgical studies, which are required to better understand the resource at Selkirk. Another amount of over half a million Canadian dollars will be required to re-develop camp infrastructure at the mothballed mine.

“The previous administration of the project was based at the Phoenix Mine. “A budget is allowed for the establishment of a temporary exploration work camp at the Selkirk site, including the purchase of portable offices, vehicles, computer hardware and software, internet, communications, infrastructure for potable water, sewage and electrical services, and security,” the consultants said.

Despite two decades without commercial operations, consultants reported that Selkirk’s underground workings were accessible and safe to enter. A ventilation fan and dewatering pumps are occasionally in operation, as part of the care and maintenance activities.

While plans advance for Selkirk’s return, the adjacent Phoenix Mine, which was the mainstay of Tati Nickel’s final years, has been bundled into a disposal process to be run as part of BCL Ltd’s liquidation.