The use of Geometallurgical

Relationships in Process Route

Selection and Mine Plan Optimisation
for the Dutwa Nickel Project
T Elkington1, L Lorenzen2,3 and C Czerny4

ABSTRACT
The Dutwa Nickel Project is a nickel laterite atmospheric leach project located in Tanzania that
has been under development by African Eagle Resources plc (2012). A bankable feasibility study
(BFS) has been progressed to evaluate mining of the resource (107 Mt at 0.92 per cent Ni) followed
by hydrometallurgical processing on-site to make a mixed nickel-cobalt intermediate product. The
unique relatively high silica contents in the Dutwa deposits, as opposed to limonite, which is more
commonly occurring in nickel laterites, presented the possibility for beneficiation of the ores to
enhance the leach feed nickel grades and provide economic benefits in terms of operating and
capital cost efficiencies.
Geometallurgical relationships, based on the results of an extensive variability metallurgical
test work program for beneficiation and leaching, were developed for the BFS, which resulted
in an improved understanding of ore classifications within the deposit and their responses. The
geometallurgical information obtained has been instrumental in making key preliminary techno-
economic decisions, such as forecasting whether or not mined material should be beneficiated and
was ultimately used to drive the mine plan towards the prioritisation of areas within the deposits
that delivered the best cost efficiencies and overall project economic outcomes.

INTRODUCTION
The Dutwa Nickel Project (the ‘project’) is located at the
junction of three wards: the Ngasamo Ward in the Busega
District and the Dutwa and Sapiwi wards in the Bariadi
District. The project is located 100 km due east of Mwanza,
Tanzania’s second largest city. The project (see Figure  1) is
focused on two hilltop laterite-style nickel deposits located
7 km apart in two principal prospecting licences, ‘Wamangola
South’ and ‘Ngasamo’. The Wamangola deposit is in the
Dutwa Ward and the Ngasamo deposit is in the Ngasamo
Ward. The nickel deposits occur as thick caps over ultramafic
bodies within Archaean greenstones. They form two ridges,
named Wamangola Hill and Ngasamo Hill.
The current JORC (2004) compliant Mineral Resource
estimate for the Wamangola and Ngasamo deposits has
increased the project’s total estimated resource to 107 Mt
at 0.92  per cent Ni, of which 95  per cent is contained in the
Indicated Category. This establishes the project’s potential and
benchmarks it favourably within the global nickel industry.
Because the Dutwa deposits are surficial, there will be no
significant waste prestrip required and overall the waste to
ore ratio is very low, less than 0.5:1. The nature of the deposit
is such that approximately 90 per cent of the contained nickel
in the resource is included in the mining inventory. Most
geotechnical domains within the mining inventory fall into
the ‘easy digging to easy ripping’ categories of excavatability.
The project is favourably situated with respect to major
road, rail power infrastructure. Settlements in the region vary
from scattered homesteads to rural village patterns in the
Ngasamo and Dutwa centres.
Nickel and cobalt minerals are developed in the laterite
blanket, which covers the ultramafic rocks of Wamangola and
Ngasamo Hills. The laterite is derived from the decomposition
of the serpentinised olivine-rich peridotites, which forms the
ultramafic rock of both the Wamangola and Ngasamo hills.
Assays from the fresh rock at the bottom of each drill hole
show that the unweathered serpentinite contains background
nickel. In the overlying laterite, the weathering process has
removed all but the least soluble elements, which include Fe,
Al, Cr, Ni and Mg. As the soluble elements are removed these
insoluble elements become more concentrated, producing a
layered profile (Figure 2). The end result is a laterite, which is
up to 56 m thick at Wamangola and 90 m thick at Ngasamo.
Relict faults and underlying dykes seen on the ground
magnetometer imagery and, in some cases, in the drilling

1. MAusIMM, Principal Consultant, Snowden, 87 Colin Street, West Perth WA 6005. Email: telkington@snowdengroup.com
2. FAusIMM, Executive Consultant, Snowden, 87 Colin Street, West Perth WA 6005. Email: leon.lorenzen@iinet.net.au
3. Extraordinary Professor, Stellenbosch University, Victoria Street, Stellenbosch 7600, South Africa. Email: ll1@sun.ac.za
4. MAusIMM, Project Manager – Metallurgy, African Eagle Resources plc, 6 - 7 Queen Street, London EC4N 1SP, United Kingdom. Email: chad.czerny@africaneagle.co.uk

THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013 207
T ELKINGTON, L LORENZEN AND C CZERNY

FIG 1 - Location of Dutwa and Zanzui deposits.

extend up into the laterite profile and may influence the
development of the layering and the mineralisation.
Mineral characterisation undertaken by the Natural History
Museum in London indicated that a significant proportion
of the nickel mineralisation at the top of the laterite profile
is found with goethite and smectite and that with depth a
nickel magnesium hydrosilicate mineral, garnierite, is more
prevalent.
In areas enriched in cobalt, a manganese black wad,
identified as the mineral asbolite, is the host mineral.
The combined Minerals Resource estimate for Dutwa’s two
deposits is depicted in Table 1.
The project’s ores have a low iron and high silica content,
which have been demonstrated to respond favourably to
upgrading via a simple, low energy beneficiation process and
leaching at atmospheric pressures with lower acid demand.
Beneficiation positively impacts the Dutwa project, as it both
minimises the acid requirements per unit of nickel leached
and optimises the throughput capacity of the processing
plant with a positive impact on development capital and
operating expenses.

TABLE 1
Dutwa Combined Minerals Resource Estimate as at September 2012, Ni Cut-off of 0.55 per cent (African Eagle Resource plc, 2012).

Deposit JORC (2004) Tonnes Ni Co SiO2 Al2O3 Fe2O3 MgO

Resource category (Mt) (%) (%) (%) (%) (%) (%)
Indicated 55.2 0.94 0.03 67.4 2.58 12.1 7.6
Wamangola
Inferred 2.7 0.80 0.03 58.8 2.10 10.7 15.4
Indicated 46.1 0.91 0.03 63.8 1.54 12.7 11.7
Ngasamo
Inferred 2.7 0.83 0.02 50.0 0.89 10.4 23.0
Indicated 101.3 0.93 0.03 65.8 2.11 12.4 9.4
Total
Inferred 5.4 0.81 0.02 54.4 1.49 10.5 19.2

208 THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013
 THE USE OF GEOMETALLURGICAL RELATIONSHIPS IN PROCESS ROUTE SELECTION AND MINE PLAN OPTIMISATION

FIG 2 - Laterite profile, Dutwa deposits.

The metallurgical test work to date has shown that the particular, the incorporation metallurgical test work into the
Dutwa ore has unusually low iron, low magnesium chemistry, economic modelling for improved decision-making is a focus.
together with high silica content. Moreover, about two thirds
of the nickel and cobalt in the Dutwa ore apparently occurs in SCENARIO EVALUATION PROCESS
a readily leachable mineral phase, believed to be a manganese
Each of the scenarios was considered in a consistent
‘wad’ or oxy-hydroxide. These characteristics make the ore
highly amenable to atmospheric tank leaching. methodology. This involved the following four steps:
An atmospheric tank leaching (AL) flow sheet is favourable 1. test work
to the overall economics and operating environment and 2. basis of design
possesses a lower risk profile than either high pressure 3. pit optimisation
acid leach (HPAL) or heap leaching (HL). AL has enjoyed 4. schedule optimisation.
significant operational success as a key part the operational
flow sheet at First Quantum’s Ravensthorpe nickel laterite Test work
mine in Western Australia and is also widely used to process
other metals, such as cobalt, copper and gold. Samples for metallurgical test work
A statistically significant variability test work database Following completion of the 2009 scoping study, the decision
has been developed as a result of the extensive test work was made to progress a more detailed evaluation of the
program concluded to date. This information has allowed Dutwa project. Six of the ten diamond HQ holes completed at
geometallurgical modelling to be applied to the mine planning Wamangola in September 2008 were selected for use in post-
process, resulting in an optimised mine schedule. scoping level test work by Mintek (South Africa), as these
This paper considers the process applied to analyse provided the most representative sample available at that
scenarios for optimising the overall project strategy. In time.

THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013 209
M CHAUHAN et al
Early in 2010 it was recognised that detailed and rigorous
testing would require larger quantities of mineralised
material than were available from prior drilling. Test material
would need to be in a physically suitable form, as solid lump
with >50 mm diameter, rather than drill chips for valid
comminution and beneficiation and other physical test work.
Thus diamond PQ core, with approximate diameter of 85 mm,
was selected.
From late 2010 to third quarter of 2012, three programs of
diamond drilling were conducted at Dutwa (both Wamangola
and Ngasamo) in order to obtain bulk quantities of drill core
samples for metallurgical test work. The three programs have
been denoted, as BOS1, BOS2 and BOS3, respectively. Diamond
holes were drilled as ‘twins’ of the reverse circulation (RC)
holes used for Dutwa resource estimation. The locations of the
diamond holes were generally selected to provide a range of
sites spatially across each deposit (in plan view).
RC drill hole assay data were also studied as part of the
selection process to ensure that the proposed diamond twin
holes would provide a range of ore grades. The range was
selected with respect to Ni and Co, but also with respect
to acid-consuming elements (Fe, Al and Mg). The drilling
would provide sufficient sample mass for each of the two
main ore domains/types ‘Ferruginous Siliceous’ (‘FeSi’) and
‘Transition’.
The BOS 1 and BOS2 programs were primarily conducted
to obtain samples for laboratory bench-scale testing. In 2011
it was anticipated that sufficient material would remain from
the BOS2 core samples for use in a preliminary seven-day
continuous pilot plant run or for use as feed to a large (1 m
diameter) column (4 - 6 m height) leach test in support of the
bankable feasibility study (BFS).
Most of the BOS1 drill core (mineralised sections) was used
in metallurgical bench-scale testing which commenced in
April 2011 and extended into 2012. This work largely used
‘bulk’ (~0.8 - 1.0 t) composites created from a number of BOS1
drill hole depth intervals and took core intervals from multiple
holes (typically eight to ten). In early 2012 it was recognised
that the BOS2 sample would be insufficient to support the
extensive pilot-scale test work that would be necessary for
the BFS. Therefore, the third phase of bulk sample collection
(BOS3) was planned in consultation with Snowden Mining
Industry Consultants, giving consideration to the expected pit
shells at each deposit (as established from pit optimisations
and mine schedules developed in April 2012).
BOS3 was split into three subphases (in accordance with a
preliminary mine plan developed ahead of drilling), which
forecast that Wamangola would be mined preferentially
(BOS3.1 and BOS3.2) followed by Ngasamo (BOS 3.3).
Objectives and chronology of metallurgical test
work
Comprehensive metallurgical test work has been undertaken
from 2009 onwards, targeting both composite and variability
responses within the Wamangola and Ngasamo deposits.
The high silica content in the deposits was considered
likely to result in a positive beneficiation response because
silica is essentially inert under standard conditions, leaving
the acid to focus on dissolving the impurities in the ore. In
addition, the Dutwa ores have low levels of iron, manganese,
copper and zinc. These were considered likely to reduce
acid consumption, enhance atmospheric leach response and
improve the quality of the concentrate.
210 THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013
Subsequent to the scoping study, metallurgical test work
has focused on both batch and variability samples from the
Wamangola and Ngasamo deposits, with the intention of
providing process design information both for the planned
BFS pilot plant campaign and for process plant design.
The proposed process mixed hydroxide precipitate (MHP)
plant flow sheet consists of two distinct process circuits,
the beneficiation circuit and the hydrometallurgical metal
recovery circuit.
The beneficiation circuit includes the comminution portion
of the plant, with primary crushing and subsequent grinding
of material being fed to the hydrometallurgical plant. The
beneficiation circuit’s purpose is to concentrate nickel through
physical processing. This is achieved by scrubbing primary
crushed ore with water and classification of the resultant
slurry, with rejection of coarse, lower grade material. The
finer, higher grade accepts fraction is then ground to achieve
mineral liberation ahead of the leaching circuit.
The hydrometallurgical circuit will possibly include
atmospheric leaching (AL) and subsequent solution
purification and mixed hydroxide precipitation (MHP).
The purpose is to dissolve the nickel and cobalt from the
concentrate produced in the beneficiation circuit and to
recover the nickel and cobalt as MHP for subsequent sale.
Comminution
Comminution test work was conducted on several variability
samples from the Wamangola and Ngasamo deposits following
historical test work conducted in 2011 and early 2012.
Crushing work indices (CWi)
•• CWi for Wamangola FeSi ore ranged from soft to very
hard with an average CWi classified as very hard
(>20 kWh/t).
•• CWi for Wamangola transition ore ranged from very soft
too hard with an average CWi classified as hard (14  -
20 kWh/t).
•• CWi for Ngasamo FeSi ore ranged from soft too hard with
an average CWi classified as medium (9 - 14 kWh/t).
•• Ngasamo transition material CWi results ranged from soft
to medium with an average CWi classified as medium (9 -
14 kWh/t).
Bond rod mill work indices (RWi)
•• Two RWi on Wamangola FeSi samples tested both
measured medium to hard and the single Wamangola
transition sample was tested, with a test work result of
hard.
•• Ngasamo RWi for the FeSi as well as transition material
was classified as hard.
Bond work indices (BWi)
•• Wamangola FeSi samples ranged from medium to very
hard with an average classification of hard (14 - 20 kWh/t).
Three Wamangola transition samples were tested, with
BWi results ranging from soft too hard with an average
classification of medium (9 - 14 kWh/t).
•• Ngasamo BWi results ranged from hard to very hard
for the FeSi material, with an average classification on
the border between hard and very hard (in the region
20  kWh/t). Transition material BWi was only tested on
two samples, with similar results of hard to very hard (in
the region of 20 kWh/t).
 THE USE OF GEOMETALLURGICAL RELATIONSHIPS IN PROCESS ROUTE SELECTION AND MINE PLAN OPTIMISATION
Scrubbing and beneficiation (including variable
response)
Scrubbing test work was conducted in a batch ISO scrubber of
1.0 m Ø × 0.5 m length. The scrubber was operated at 55 per
cent Nc (23.3 rev/min) and the target density was 50 per cent
solids for all of the variability tests. Bulk composite samples
of the Wamangola ore were subjected to scrub tests at 0.5,
2.0 and 4.0 kWh/t input specific energy. It was found that
a specific energy input of 4.0 kWh/t was most effective at
deagglomerating the clay balls in the ore and resulted in less
fines adhering to the oversize material. An upgrade factor
of around 2.0 was achieved across the bulk ore tests and
approximately 78 per cent of the Ni was retained in the fines
at a cut size of 3.35 mm. The 4 kWh/t energy input was then
selected and used on a series of variability samples from both
the Wamangola and Ngasamo deposits.
After the inclusion of the BOS2 and BOS3 variability samples,
the average upgrade factor for Wamangola FeSi reduces to
1.7, while on average about half of the mass is retained. Of the
original Ni in the feed, 78 per cent is retained on average in
the -3.35 mm fraction. Other outcomes from these tests were:
• the Wamangola transition ore did not respond as well
to beneficiation, with an upgrade factor of less than
the average achieved before 1.4 across the range of
investigated cut sizes (0.5 mm - 3.35 mm)
• the Ngasamo FeSi ore achieved reasonable upgrade
factors but resulted in higher losses of Ni
• the Ngasamo transition ore responded well to
beneficiation, achieving similar upgrade factors and Ni
recoveries as Wamangola FeSi ore.
Plotting the upgrade factor against the head grades for the
key elements revealed that several correlations exist, which
could assist with mine plan development, namely:
• The Wamangola FeSi ore plots indicate that ores high in
silica and low in iron will respond better to beneficiation
than those low in silica and high in iron.
• The Wamangola ores transition exhibited similar trends
with silica and iron content, also showing that low nickel
head grade is associated with higher upgrade factors.
• Ngasamo FeSi ore exhibits a correlation between silica and
the upgrade factor, again indicating that as the silica grade
increases, the response to beneficiation will improve.
FIG 3 - Nickel upgrade relationship to silica head grade.
THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013
• The Ngasamo transition ore results however, did not
show a clear correlation between any of the key elements
and the upgrade factor. This was however, the smallest of
the sample sets.
• All of the ores showed a correlation between the mass pull
and upgrade factor, where low mass pulls are associated
with higher upgrade factors (see Figure 3).
Leaching results
Leach tests were carried out under atmospheric pressure, in
agitated reactors equipped with gas dispersion turbines. The
reactors have the ability to be heated as required and are fitted
with lids and condensers. The leach is considered to start once
the first reagents are added to the reactor. Outcomes of these
tests were:
• Higher sulfuric acid addition rates result in increased
nickel recoveries; however, these are accompanied by
increased dissolution of deleterious elements.
• Beneficiation of Wamangola FeSi ore appears to reduce
the acid consumption in the leach without negatively
affecting the nickel recovery.
• Beneficiation of Wamangola transition ore appears to
improve nickel recovery, with a small penalty in acid
consumption.
• Leach densities of 30 per cent solids w/w were utilised
in the testing, at 40 per cent solids the magnesium sulfate
concentrates approach saturation levels, which may
become problematic.
• Leach test work was conducted at temperatures ranging
from 80°C to 101°C, with minimal benefit noted at
the higher temperature. A temperature of 95°C is
recommended.
• Sequential leaching appears to reduce the acid
consumption of the leach in comparison to blended
leaching, without having a negative impact on the nickel
recoveries.
Solution purification results
A summary of the solution purification (SP) operating data
and results are as follows:
• the data appears to suggest that limestone consumption
has an inverse relationship with magnesium levels for
equivalent of iron and aluminium rejection
211
T ELKINGTON, L LORENZEN AND C CZERNY
•• some oxidation of ferrous in the commercial flow sheet
might occur, using oxidised manganese species in the
returning slurry
•• ferrous oxidation with air should not be problematic in
the commercial plant subject to employing tanks with
an appropriate L/D aspect ratio and an impeller system
appropriate for oxygen mass transfer.
It has been recommended that prior to any large-scale
continuous pilot plant operation a mini-pilot plant test
(‘integrated test’) program should be undertaken. This will
model the full process flow sheet at a small scale, as a means to
de-risk the more costly main pilot plant and to provide early
confirmation of the process performance predicted by the
discrete beneficiation and leach test programs. The integrated
test will enable the production of limited quantities of nickel
product, which could be used in development activities.
Basis of design
Following the test work completed, the project team would
meet to discuss the results of the test work, to understand the
significance, to explain any outliers and to agree on how the
data would be used for modelling.
Pit optimisation
Pit optimisation was completed on the agreed basis of
design. For the pit optimisation each mining block is coded
with appropriate revenues and operating costs. Revenues
depend on the grade of the block as well as the recovery of
nickel through beneficiation (if applied), leaching and any
downstream losses. Costs were derived from a cost model
developed from a number of key drivers, such as feed tonnes,
leach tonnes, acid addition and nickel recovered. The unit
revenues and costs were consistent for all scenarios. For
confidentiality reasons, the absolute value of these parameters
cannot be disclosed in this paper.
Depending on the scenario and the test work, the input
parameters will vary on the basis of elemental composition.
The elemental composition considers the presence of all
elements in the feed, with a particular focus on nickel, cobalt,
silica, iron, magnesium and aluminium. Consideration is also
paid to minor elements such as chromium and manganese. A
stoichiometric model of predicting acid addition on the basis
of elemental composition was particularly important.
The pit optimisation algorithm with the Whittle 4X software
package is used to determine the economic extents of the pits
with the modelled revenues and costs and taking cognisance
of which material is economic for processing and also the
waste that must be uncovered to reach the ore, given the
application of safe slope constraints. Unlike many nickel
laterites, which are very shallow this orebody reaches depths
of up to 80 m. Many of the geotechnical issues are mitigated
by the fact the deposits is situated within hills.
Schedule optimisation
Based on the calculated pit limits, the model was split into
coarse blocks, with 100 m by 100 m extents, for scheduling.
Slope constraints were considered. Blocks were able to be
extracted in any order so long as these slope constraints
were adhered to. This allows maximum flexibility to supply
the best possible material to the plant. This is made possible
by the relative low mining movements required and the low
mining costs relative to the total project operating cost.
212 THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013
CASE STUDY
Scenarios
Three key scenarios were considered for this case study:
1. base case: this case considered whole run-of-mine ore
leaching
2. beneficiation of all ore types in the deposit followed by
leaching
3. economic leaching from the potential reduction in acid
addition to the leach feed.
The following sections describe the modelling of these
scenarios followed by a comparison.
Modelling
Beneficiation
Initial beneficiation results revealed that there was potential
for significant nickel upgrades. The project team then
completed bulk composite test work to confirm these
results and a variability program to understand the range
of upgrade factors and their drivers. In total, approximately
120 beneficiation variability tests were completed (~80 with
Wamangola ore samples and ~40 with Ngasamo samples)
across a wide range of compositions. Statistical analyses
were completed in attempting to uncover a key driver for
performance (in terms of upgrade factors). Silica was found
to be a strong predictor. Figure 3 shows the nickel upgrades
plotted against silica head grade.
A number of important outcomes were gained from this
analysis:
•• Beneficiation performance can be well predicted by silica
assay content. This will be beneficial, not only from a
modelling perspective, but also from an operational grade
control perspective.
•• The beneficiation performance indicates a continuum on
the basis of silica. There does not appear to be any major
outliers or step changes in performance. Therefore, all
material could be considered one ore type (with varying
composition).
•• The difference between the performances of the two
deposits is statistically insignificant. This indicates that for
a common composition that beneficiation of each deposit
can be treated as the same.
Similarly strong, continuous and consistent relationships
were found for mass pull and the upgrade factors of all
important elements. The modelled relationships are shown in
Figure 4.
At low silica contents, the mass pulls are relatively high and
the upgrades are relatively low. Importantly, the magnesium
upgrade is lower than the nickel upgrade. At higher silica
contents, the mass pulls are lower and the upgrades are
accelerated, including nickel. Only aluminium has a higher
upgrade factor than nickel in this silica range.
Overall, the upgrade factors are encouraging. Further to this,
a comparison of leach performance shows that beneficiated
ore provides preferential outcomes for material of similar
elemental composition, particularly from the perspective of
acid consumption.
Economic leaching
Given the importance of acid consumption on the project,
variability test work was undertaken on selected beneficiated
samples to understand the impact of acid addition settings
on nickel recoveries. Results indicated a strong correlation
 THE USE OF GEOMETALLURGICAL RELATIONSHIPS IN PROCESS ROUTE SELECTION AND MINE PLAN OPTIMISATION

FIG 4 - Beneficiation performance prediction trends.

of extraction of all elements as acid is added to the feed
(Figure 5). In particular, there are low recoveries of Al and
Fe but high Mg recovery at lower nickel recoveries. As acid is
added and nickel recovery increases, Al and Fe are recovered
at an accelerated rate and Mg is largely unchanged. This
indicates there may be an opportunity to reduce acid to the
point where iron and aluminium recoveries begin to increase.
While this would further reduce the nickel recovery, it would
potentially allow for a greater production rate of nickel for a
fixed acid capacity, given that acid consumption is reduced
by more the nickel loss.
Results
Schedules were completed for the three scenarios. Case 1
considers an optimal mining schedule for un-beneficiated
ore feed. Case 2 assumes all material is beneficiated. Case 3
considers the impact of a 25 per cent reduction in nickel leach
recoveries (and the associated reductions in acid consumption
and cost). All schedules were completed with a common
constraint on acid generation per period. This ensures that the
capital cost of all scenarios is similar, allowing comparisons
to be made on an operating basis alone. Input parameters are
omitted to preserve confidentiality.
A summary of the key differences in the outputs between
scenarios is shown in Table 2 in total and over time in
Figures 6 to 10.
Case 1 (no beneficiation) is optimised with respect to
providing a flexible mining schedule which provides the
highest nickel grade, lowest acid consuming blocks first.
Beneficiation (Case 2) shows an increase in operating
discounted cash flow of 13 per cent over the un-beneficiated
case. This results from a higher leach grade, which allows more
nickel to be recovered early in the project, despite lower unit
acid consumptions (due to beneficiation upgrades of acid
consuming elements). Whilst revenue is reduced by 15 per
cent overall, this is compensated by a reduction in operating
cost of 21 per cent. The unit losses are compensated by a
lower cut-off grade, which brings some lower grade material
into the economic inventory.
The reduction in acid addition (Case 3) provides a further
two per cent increase in operating discounted cash flow,
even with a further reduction in overall nickel recovery. This
increase in value is gained by allowing more tonnes to be
leached for the same acid consumption, thus increasing the
production rate of nickel.

FIG 5 - Leach extraction relationship between elements.

THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013 213
T ELKINGTON, L LORENZEN AND C CZERNY

TABLE 2 Further optimisation (although not completed at this stage)

Scenario summary. could be gained by optimising process settings on a block-by-
block basis considering both whether beneficiation is beneficial
Case 1 Case 2 Case 3 or not and the level of acid addition. An additional case was
No beneficiation Beneficiation Beneficiation – considered (but not shown), whereby individual blocks were
economic leaching able to bypass beneficiation if this improved the discounted
value. However, this was found to only slightly improve the
Ore feed 100% 119% 122% discounted value. The option was only accepted by very high-
Ni grade 100% 96% 95% grade nickel. Some additional blocks were shown to generate
Leach feed 100% 56% 57% greater profit without beneficiation, but the additional usage
of the acid constraint restricted nickel production; thus these
Leach ni grade 100% 153% 149% blocks added value by being beneficiated.
Recovered nickel 100% 85% 64% Also, given the lower acid addition in Case 3, there may be
Revenue 100% 85% 64% an opportunity to reduce the rate of acid addition and thus
Operating 100% 79% 57% project capital expenditure. This may increase the project rate
expenditure of return.

Operating cash 100% 99% 82%

flow
CONCLUSIONS
This paper has shown how targeted variability test work
Discounted cash 100% 113% 115%
on parameters that affect the key project drivers, in this
flow
case acid consumption, can be used to provide greater

FIG 6 - Leach feed comparison.

FIG 7 - Leach nickel head grade comparison.

214 THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013
 THE USE OF GEOMETALLURGICAL RELATIONSHIPS IN PROCESS ROUTE SELECTION AND MINE PLAN OPTIMISATION

FIG 8 - Recovered nickel comparison.

FIG 9 - Operating cash flow comparison.

FIG 10 - Cumulative discounted cash flow (operating) comparison.

THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013 215
T ELKINGTON, L LORENZEN AND C CZERNY

project understanding and enable value to be added to the ACKNOWLEDGEMENTS

project. The outcomes showed that the maximisation of
The authors wish to that African Eagle Resources plc
nickel recovery does not necessarily add value where the
for permission to publish this paper and Orway Mineral
achievement of this goal adversely impacts on the production
Consultants (OMC)/Lycopodium for engineering input and
rate (and operating and capital costs) of the project. The test
management of the test work and ALS and SGS for completion
work also provided be definitive performance drivers that
of the test work.
will support operational decision making. Opportunities to
further improve value through test work were identified.
REFERENCE
African Eagle Resource plc, 2012. Significant nickel deposit [online].
Available from: <http://www.africaneagle.co.uk/dutwa-
resources.asp>

216 THE SECOND AUSIMM INTERNATIONAL GEOMETALLURGY CONFERENCE / BRISBANE, QLD, 30 SEPTEMBER - 2 OCTOBER 2013