New Preliminary Economic Assessment For Samapleu-Grata Nickel-Copper Project

New Preliminary Economic Assessment For Samapleu-Grata Nickel-Copper Project

MONTREAL – Sama Resources Inc. reported on the new Preliminary Economic Assessment (PEA) for the Samapleu-Grata Nickel-Copper project located in Côte d’Ivoire, West Africa. The PEA is a preliminary technical study that examines the potential for a conventional open-pit mining operation producing both a conventional copper and nickel concentrate, together with cobalt, platinum, palladium and gold as by-products. As well the Sipilou Sud laterite deposit would produce direct shipping material.

Marc-Antoine Audet, President and Chief Executive Officer, said, “The preliminary economic assessment reflects our new approach to the Project. It showcases the value of the Samapleu-Grata Nickel-Copper project and improves upon our 2020 PEA. While we present a lower NPV and IRR than we did in 2020, that is principally a function of the lower nickel price used in this PEA. The PEA we have effectively doubled the mill feed and changed the flow sheet to produce conventional nickel and copper concentrates, and in doing so have increased overall nickel concentrate production by 19% and importantly increased life-of-mine copper concentrate production by more than 100% over its projected sixteen-year mine life. The project now has the potential to produce approximately 38,000 tonnes per year of copper concentrate on average over the life of mine resulting in 10,000 tonnes per year of payable copper on average.

What is exciting about the PEA is that we believe it to just be the beginning. The Samapleu-Grata Nickel-Copper project presents the rare opportunity for significant expansion over its 835 km2 area. We have already identified surface nickel-copper mineralization at prospects such as Yepleu, located 25 kilometers south-west of Samapleu-Grata, and we have more than ten other targets of interest. Yepleu and these other prospects highlight the significant untapped mineral potential of the entire project area.”  

The 2024 PEA outlines the potential for a conventional open pit mining operation supporting 86.5 million tonnes of modelled mill feed together with 1.62 million tonnes of direct shipped laterite material entirely from the Grata, Main and Extension deposits and the Sipilou Sud Laterite deposit. Average annual production of approximately 38,627 tonnes of 26% copper concentrate and 55,119 t of 13% nickel concentrate. Average annual nickel metal in concentrate of approximately 7,165 tonnes per year and copper metal in concentrate of approximately 10,043 tonnes per year, with a 16 year-life of mine. Pre-tax Net Present Value (NPV) at 8% discount rate of US$463M and internal rate of return (IRR) of 28.2%, and Post-tax NPV of US$257M and post-tax IRR of 22.3%. Initial capital costs of US$338M including a contingency of US$61M. All-in sustaining cash costs1 per pound Ni and Cu of US$4.05 / lb before by-product credits and US$3.00 / lb after by-product credits of US$1.05 / lb, with Post-tax payback period of 3.8 years.

The 2024 PEA is preliminary in nature and includes inferred mineral resources, considered