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NORNICO Scoping Study Confirms Strong Potential for Nickel, Cobalt, and Scandium Production

A Promising Future for the NORNICO Project

Metallica Minerals Limited (ASX: MLM) has released the results of a scoping study for its NORNICO “Tri-metal” Project in North Queensland, Australia. The study confirms that the project is technically and financially viable, positioning Metallica as a potential leading producer of nickel, cobalt, and scandium. With a projected mine life of 20 years, the study provides confidence in the long-term sustainability and profitability of the project.

The NORNICO project encompasses the Greenvale, Lucknow, and Kokomo deposits, each contributing to the production of high-value metals essential for industries such as battery technology, aerospace, and fuel cells. With a planned processing capacity of 750,000 tonnes per annum, Metallica Minerals is moving toward the next phase of development, focusing on pre-feasibility studies and securing offtake agreements for scandium oxide.

Key Findings from the Scoping Study

The study has confirmed that the NORNICO project has the capacity to produce three valuable metals: nickel, cobalt, and scandium oxide. The estimated capital expenditure for the project is A$597 million, excluding contingency, while the projected annual operating costs stand at A$138 million.

Financial analysis highlights a Net Present Value (NPV) of A$402 million (pre-tax, 10% discount rate) and an Internal Rate of Return (IRR) of 16.4%, reflecting strong economic potential. The average annual operating margin is estimated at A$179 million, reinforcing the project’s ability to generate substantial cash flow over its lifetime.

Scandium Production and Market Potential

One of the key highlights of the project is its potential to become a major supplier of scandium oxide, a critical material used in aluminium alloys and solid oxide fuel cells. In the initial years, scandium production is planned to be 40,000 kg per annum, with flexibility to scale up to over 100,000 kg per annum by processing higher-grade scandium material. This scalability ensures that Metallica can adapt to future market demands while maintaining a steady supply.

With scandium playing a vital role in lightweight alloys for the aerospace and automotive industries, as well as in clean energy applications, securing long-term offtake agreements is a priority for Metallica Minerals. The company is currently in discussions with potential buyers in key sectors and is confident in finalising agreements before making a final development decision.

Strategic Flexibility in Nickel and Cobalt Production

Beyond scandium, the NORNICO project is also well-positioned to produce nickel and cobalt, which are essential for the global transition to battery-powered technologies. The project design allows for flexibility in adjusting production levels based on commodity price fluctuations, ensuring Metallica remains competitive in changing market conditions.

Next Steps and Future Outlook

Following the positive scoping study results, Metallica Minerals is now advancing to the Pre-Feasibility Study (PFS) stage, which will further refine project economics and operational strategies. The company is also continuing scandium recovery testwork to enhance the purity of scandium oxide, ensuring it meets the specifications required by end-users in high-tech industries.

With its strong financial outlook, scalable production strategy, and growing demand for its key metals, the NORNICO project is set to become a cornerstone asset for Metallica Minerals. The company’s ability to produce multiple high-value metals while maintaining operational flexibility places it in a strong position for long-term success.

Conclusion

The scoping study confirms that the NORNICO project is both technically and financially viable, with the potential to deliver significant returns over its 20-year lifespan. By producing nickel, cobalt, and scandium oxide, Metallica Minerals is well-positioned to meet the growing demand for these critical materials. As the company progresses toward the Pre-Feasibility Study, it remains focused on securing key offtake agreements and optimising metallurgical processes to unlock the full value of the deposit.