According to Titan, the low iron to magnesium oxide ratio to date has seen WMC Resources reject the Armstrong ore at the Kambalda nickel concentrator, and with various other criteria also outside specifications – namely the sulphur and iron content – “it is now possible that all material contained within the open put would be deemed unacceptable”.
Confusingly, Titan said that metallurgical testwork prior to development being given the go ahead had shown the ore was outside the specification with regard to the iron to magnesium oxide ratio.
Titan had hoped to produce 128,000t at 1.78% contained nickel from the open put at Armstrong, ahead of the underground mining of 339,000t at 2.25% nickel.
Development of an open cut was supposed to include earlier access to the ore and the ability to collar the decline in fresh, unoxidised rock.
Titan is now seeing whether another third party will take its ore, however it “is not in a position at this time to present a viable production plan going forward”
Meantime the company has farmed out its Munda project near Widgiemooltha to former suitor Consolidated Minerals.
ConsMin will hold a 50% stake in the nickel and gold prospective project, and will spend $1 million over the next 12 months on exploration.
ConsMin proposed a takeover of Titan earlier this year that valued the would-be nickel miner at $94 million, with the bid being subsequently pulled because it did not meet internal financial hurdles.
Shares in Titan dropped as nearly 70% immediately following this morning’s announcement, though in late morning trade they’d recovered slightly to be down 9.5c (or 56%) at 7.5c. The shares were at 54c back in April.
