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Annual Report 2016 19
OPERATIONS - NOVA PROJECT
FY17 will be both challenging and rewarding
as we complete the construction phase, move
through the commissioning phase and into
full operations
BACKGROUND
The Nova discovery hole was drilled in
July 2012 and a maiden resource was
released some 12 months later in May
2013. The current JORC 2012 compliant
Mineral Resource
1
is 14.3Mt 2.3%Ni,
0.9%Cu and 0.08%Co. The Definitive
Feasibility Study, completed in July 2014,
confirmed the robustness of the Project
and development at Nova commenced
on 26 January 2015. IGO acquired the
Nova Project in September 2015 through
the acquisition of Sirius Resources NL.
As at June 2016, the overall Project was
93% complete and was on schedule and
on budget to produce first nickel and
copper concentrates by December 2016
as planned.
CONSTRUCTION
Construction of the process plant and
its associated infrastructure was 86%
complete as at 30 June 2016 and was
being progressed ahead of schedule. All
major mechanical equipment was onsite
with the focus on piping and electrical
installation. It is expected commissioning
will commence in the December 2016
quarter with first saleable concentrate
produced in accordance with plan by
December 2016.
Other sections of the Project completed
to date include the 492 room
accommodation village, the 38km sealed
site access road, the sealed aerodrome
(certified for jet aircraft), the central water
treatment plant, the administration
facilities, the heavy equipment workshop
and associated fuelling and wash down
facilities and the life of mine tailings
facility.
Electric power for the Project is provided
by Zenith Pacific under a Build Own
Operate contract. Stage 1 of this power
generation facility, consisting of three
1.7MW diesel generators, has been
commissioned and is suppling reticulated
power to all areas of the Project. Stage
2, consisting of five 3MW GE diesel
generators, which are capable of
operating on either gas or diesel in the
future if required, will be commissioned
during the September 2016 quarter.
To supplement power generation at
Nova a 6.7MW solar farm is planned for
installation later in FY17.
The Project is expected to be completed
within the capital expenditure budget of
$443M and, with the work completed to
date, the risk of a capital cost overrun has
largely been eliminated.
$443
million
Capital Budget
492
room
Accommodation
Village
1st
Ore
June 2016
1
See Resources and Reserves section on pages 23-28 of this report.