A POSITIVE scoping study has projected Heron Resources Ltd’s Yerilla nickel project, 150 kilometres north-east of Kalgoorlie, could have a mine life of 18 years.

Using BHP-Billiton patented atmospheric leach technology to minimise risk, the Yerilla project is estimated to produce 21,000 tonnes of nickel and 1400 tonnes of cobalt a year.

The study has projected that a $1.2 billion capital expenditure to establish a mine and processing plant would be recouped in six-and-a-half years, based on conservative forecasts for nickel prices and the Australia-US exchange rate.

Heron managing director, Mathew Longworth, said: “Heron will now review the results of the study and determine the optimum development options for the Yerilla Project.

“As previously advised this will likely include the desire to identify an equity partner for the project, given its large capital requirement.

“Further studies will be undertaken to investigate opportunities for further improvements in important aspects of the project, including resource beneficiation, leaching performance, and water quality,” Mr Longworth said.

Heron reached agreement with BHP-Billiton in January for use of the patented atmospheric leach technology.

The latest study incorporated the Jump-up Dam, Boyce Creek and Aubils projects as part of Yerilla.

The proposed change in leach method and expanded 135.3 million tonne resource base had “significantly improved the project’s financial integrity” in comparison to a stand-alone Jump-up Dam heap leach project pre-feasibility study which Heron completed in January, Mr Longworth said.