Independent Nickel Corp. is focused on nickel and copper exploration, and its Lynn Lake, Manitoba, mine has produced more than 20 million tons of nickel and copper ore.

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Waldrop Engineering Inc.

With its properties in northern Manitoba, Canada, Independent Nickel Corp. aims to take a place as a major player in Canadian mining, CFO and Director Guy Mahaffy says. The Sudbury, Ontario-based company is focused on nickel and copper exploration.

Independent Nickel was formed in 1976 as Seymour Exploration Corp. When Mahaffy and his partner, President and CEO Richard Murphy, were appointed to their current roles in 2005, they set out to change Seymour Exploration’s direction. Previously, the company focused on more grass roots exploration of base and precious metals in northern Canada.

This new direction not only found the company concentrating on nickel and copper, but also changing its name to Independent Nickel, Mahaffy says. The new name “more accurately reflects what we’re up to,” he explains.

That year, Independent Nickel also acquired its Lynn Lake nickel mine in Lynn Lake, Manitoba. Discovered in 1941, the mine was operated by Sherritt-Gordon from 1953 to 1976.

Through the years, the Lynn Lake mine produced more than 20 million tons of nickel and copper ore. “It had been shut down [in 1976] without being fully mined out,” Mahaffy asserts.

With the aid of independent consultants, Independent Nickel has determined that the Lynn Lake mine has an estimated 20 million ton nickel resource left in the ground (national instrument 43-101 compliant). “[Its] pre-tax present value is about $130 million,” Mahaffy adds.

Evaluating Processes
Independent Nickel is four years away from starting production at the Lynn Lake mine, Mahaffy says. “The main reason [is] we’re dealing with a historic mine that has not been kept on care and maintenance,” he says.

As it looks to completing the necessary mine rehabilitation, Independent Nickel is also weighing its options, including the construction of its own bioleaching facility.     

Usually, Mahaffy explains, mining companies of the size of Independent Nickel will send nickel concentrate to a smelter to produce a refined product.

By building its own bioleaching facility, Independent Nickel can perform this task on its own.

“The bioleach [process] effectively extracts the nickel from the concentrate,” Mahaffy says. “With a relatively modest capital investment, we will see a quick payback by not having to pay third party smelter charges.”

At the moment, “There is no similar bioleach-based metal facility in North America,” Mahaffy says. The company has consulted with several engineers, as well as a metallurgist in the United Kingdom, Andy Carter of Wardrop Engineering.

Staying Strong
As the company edges closer to production, its success will depend on nickel prices staying strong, Mahaffy says.

Currently, “Nickel [has traded] as high as $14 recently,” he says, adding that the company has witnessed “large takeover activity” within its market.

Independent Nickel is open to forming a joint venture at Lynn Lake, particularly with a “mid-tier nickel or base metal producer that’s looking to diversify geographically,” Mahaffy says.

“We’re primarily an exploration company, so we would be looking for a partner that can bring some development expertise to the table.”