Nickel-Cobalt & Scandium Zircon & Rutile HMS Resource Development Company An Australian Queensland Explorer of the Year - 2011 Symposium, Broken Hill Stewart Hagan 22 nd May 2012
Jan 22, 2015
Nickel-Cobalt & Scandium
Zircon & Rutile HMS
Resource Development Company
An Australian
Queensland Explorer of the Year - 2011
Symposium, Broken Hill
Stewart Hagan
22nd May 2012
Statements & material contained in this presentation, particularly those regarding possible or assumed future performance, production levels or rates, metal prices, metal
markets, resources or potential growth of Metallica Minerals Ltd, industry growth or other trend projections are, or may be, Forward Looking Statements. Such statements relate to future events & expectations &, as such, involve known & unknown risks & uncertainties.
The NORNICO Nickel-Cobalt & Scandium Project, Lucky Break Nickel Projects, the Weipa & Gippsland Heavy Mineral Sands projects are at the evaluation & feasibility stage & although reasonable care has been taken to ensure that the facts stated in this presentation are accurate & or that the opinions expressed are fair & reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness.
Actual results & developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.
At the date of this presentation Metallica Minerals holds approximately 30.8% of MetroCoal Limited which listed on the ASX on 4 December 2009, further information can be sourced from metrocoal.com.au
At the date of this presentation Metallica Minerals holds approximately 19.1% of Cape Alumina Ltd which listed on the ASX on 29 January 2009 & latest & more detailed information can be sourced from Cape Alumina & capealumina.com.au
At the date of this presentation Metallica Minerals holds approximately 15.7% of Orion Metals Limited, further information can be sourced from orionmetals.com.au
At the date of this presentation Metallica Minerals holds approximately 37% of Planet Metals Limited, further information can be sourced from planetmetals.com.au
Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
This material is used for a company summary presentation only, for more detailed information the reviewer should seek company information as provided in Metallica’s ASX releases, Annual & Quarterly Reports.
Disclaimer
Technical information contained in this report has been compiled by Metallica Minerals Managing Director Mr Andrew Gillies B.Sc. M. AUSIMM & Metallica Minerals Ltd, who
is a competent person & a member of the Australasian Institute of Mining & Metallurgy & have relevant experience to the mineralisation being reported on to qualify as
Competent Persons as defined by the Australasian Code for Reporting of Minerals Resources & Reserves. Mr Gillies consents to the inclusion in this presentation of the
matters based on the information in the form & context in which it appears.
3
MLM Financial Overview
Financial Information (27 April 2012)
Share price 0.25c
Shares on Issue 132.4M
Market Cap $33.7M
Cash Position $10.5M
ASX Investments* ~$32.2M
Cash & Listed Inv. per share 0.32c
Major Shareholders
Jien Mining Pty Ltd** 19.0%
Golden Breed Pty Ltd 7.3%
Victorian Ferries Pty Ltd 4.5%
RCF (Funds III LI & IV LP) 3.9%
Bondline Ltd 3.8%
Top 20 shareholders 55.4%
** Subsidiary of Jilin Nickel Co. Limited *see investment slide at the back of this presentation
Cash & listed ASX investments provide financial confidence to advance core projects
MLM: 12 Month Trading History
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4
Board of Directors (5) & CEO
Name Position Background Experience
David Barwick Non-Executive Chairman Financial / Corporate 40+ years
Andrew Gillies Managing Director Geology / Mining 25+ years
John Haley CFO / Director / Company Secretary Financial 25+ years
Barry Casson Non-Executive Director Financial / Corporate 40+ years
Wu Shu (Tao Li
– Alternate) Non-Executive Director Engineering 30+ years
Gavin Becker CEO Metallurgy / Engineering 30+ years
Experienced, talented & dedicated Board & Management team
Focussed on delivering value to shareholders
(L-R): Gavin Becker, Barry Casson, John Haley,
David Barwick, Andrew Gillies, Tao Li
1. NORNICO “Tri Metal”
Nickel–Cobalt & Scandium Project
2. Zircon Rutile Heavy Mineral Sands Projects
Weipa HMS – 100% owned
Gippsland Zircon Ti Minerals HMS –
Option to Acquire 100% from Rio Tinto
3. Cash & Listed Investments ~$42M (27 April 2012)
5
Metallica Minerals 3 Asset Groups
Core Project Assets: Nickel-Cobalt-Scandium
& Zircon-Rutile
Vision
Become a highly
successful Australian
mineral resource
developer, a profitable
producer of Nickel -
Cobalt - Scandium &
Zircon - Rutile and
deliver high returns for
shareholders
6
100% owned Tri-metal project – nickel, cobalt & scandium
Excellent location, infrastructure & processing site
Ni-Co + Sc oretypes are highly amenable to HPAL extraction
Completed extensive exploration & resource definition
program based on >4,000 drill holes
Ni-Co resource 50.3Mt @ 0.81%Ni, 0.09% Co (406,000t
Ni & 44,000t Co) (~90% in Indicated & Measured
category)
PLUS
Scandium resource 16.8Mt @ 130g/t Sc (3,250t Sc2O3)
Scoping Study (+35%) advanced – Completion June 12
(see page 24 and Appendix 1 for detailed resource tables)
7
NORNICO: Project Overview
The discovery of scandium within Ni-Co deposits provides Metallica with an exciting
opportunity to become the world’s pre-eminent supplier of scandium oxide
8
NORNICO: Delivering Scandium - Element 21 “The Enhancer”
Fuel Cells (up to 85% energy efficiency)
Scandia Stabilised
Zirconia
Lighting
Aluminium-Scandium Alloys (light, high strength alloy frames)
Scandium has unique properties that will enhance our future –
A major & reliable supply could underpin a significant increase in scandium’s usage & application
Aerospace
Scandium is one of the 17 Rare Earth Elements and priced over $1,500/kg Sc oxide
9
NORNICO: Scandium Uses
Product Application of scandium
Scandium – Aluminium
Alloys
Small quantity of scandium (0.2-0.5%) significantly increases the strength of aluminium
alloys – important for transport (lightness) & structural (strength) applications
Scandium significantly improves weldability, corrosion resistance & reduces heat
cracking
Stronger & lighter frames can deliver significant benefits to industry
(aerospace, marine craft, cars, sporting goods, bicycles, construction, etc)
Scandium super alloys provide the highest strength-to-weight ratio of any ally
commonly used today
Solid Oxide Fuel Cells
(SOFC)
SOFCs allow natural gas (or other fuel source) chemically converted to electricity, heat,
water & CO2 with up to 85% efficiency
Scandium Stabilized Zirconia (SSZ) most efficient SOFC & at lower temperature
(performance gains) & extended life for SOFC’s
SOFC on-site electricity generators sized for home, business or town (gas connected)
& selling excess electricity to grid
SOFC using SSZ technology coinciding with increasing gas availability network
Lighting Scandium in metal halide vapour lamps contributes a large number of spectral
emission lines to the light, giving it a natural white light or sunlight appearance
The light is brighter (more lumens per watt) & is a more efficient form of lighting
Commonly used on movie sets & sport stadiums to create artificial sunlight
appearance
Planned / WIP
Completed
Commenced
Mar Q Jun Q Sep Q Dec QMar QJun Q Sep Q Dec QMar Q Jun Q Sep Q Dec QMar QJun Q Sep Q Dec Q
Exploration Program / Resource Delineation
Concept Study
HPAL pilot testwork / SX extraction (Sc focus)
Metallurgical Testing (ongoing)
Scoping Study (750ktpa)
Environmental Studies
Prefeasibility Study
Scandium Marketing & Offtake Arrangement
Bankable Feasibility Study
Funding / Financial Close
Design Phase
Development / Construction
Commissioning / Operation
Milestones2012 2013 2014 2015
2010 2011
10
NORNICO: Planning The Way Forward
1H 2012 – Key Activities
HPAL continuous piloting – provide Sc2O3 product for marketing + patent process commenced
Scoping Study commenced
Greenvale stockpile sampling & beneficiation studies
Environmental Impact Statement (EIS) – commenced
Greenvale MLA & progress permitting
11
Zircon-Ti Minerals: Gippsland HMS Project Overview
A Major New Zr-Ti Minerals HMS Resource
In August 2011, Metallica acquired an option to
purchase the Gippsland Heavy Mineral Sands
(HMS) project from Rio Tinto
12 month option to acquire 100% for $8M
Advanced exploration project
Nine tenements covering over 620km2 of Pliocene
fossil HMS strandlines
12,700m of RC drilling (232 holes) completed to
date by Rio Tinto Exploration & 43 Aircore holes
completed by MLM Jan 2012
Maiden JORC Inferred Mineral Resource
announced April 2012
1.7Bt @ 2.2%THM* for 38Mt contained HM
Inc: Higher grade zone 360Mt @ 2.7% THM for
9.7Mt contained HM** (see page 13)
*THM – Total Heavy Mineral
**HM – Heavy Mineral
Medium grade, large tonnage resource with significant zircon in mineral assemblage
12
Zircon-Ti Minerals: Gippsland HMS Project
MLM Drill Results (Mar 2012)
Hole 510
33m @ 3.02%THM
Inc. 4.5m @ 5.62% THM
Hole 514
51m @ 3.09%THM
Inc. 7.5m @ 6.27% THM
Hole 504
48m @ 2.90%THM
Inc. 6.0m @ 4.90% THM
Hole 513
51m @ 2.89%THM
Inc. 7.5m @ 5.18% THM
13
Zircon-Ti Minerals: Gippsland HMS Project
Mineral Resource
Resource Category Tonnes
(Mt)
THM
(%)
Slimes <38 μm
(%)
Contained HM
(Mt)
Inferred 1,700 2.2% 24.4% 38
Notes:
1. The Mineral Resource was estimated by AMC Consultants and reported according to the JORC Code and guidelines (JORC,2004)
2. Tables may contain arithmetic errors due to rounding.
3. The Mineral Assemblage data is reported as the percentage of the Total Heavy Mineral (THM) component and is classified as
4. Inferred due to limited data available
5. Combined Titanium Materials consists of leucoxene, altered ilmenite and ilmenite.
6. THM and Contained HM also include other non-valuable minerals. As such, the Contained Mineral Assemblage does not sum tothe Contained HM.
For further information see ASX release dated 26 April 2012.
Tonnes
(Mt)
Contained
(HM)
HMS Mineral Assemblage (Inferred)
Zircon (%) Rutile (%) Combined Titanium
Materials (%) Monazite (%)
360 2.7% 15% 4% 50% 0.6%
Tonnes
(Mt)
Contained
(HM)
Contained HMS Mineral Assemblage (Inferred)
Zircon (kt) Rutile (kt) Combined Titanium
Materials (kt) Monazite (kt)
360 2.7% 1,420 400 4,760 60
Total JORC Inferred Mineral Resource (cut-off grade of 1% THM)
Including high grade zone with closer spaced drilling (cut-off grade of 1% THM)
14
Zircon-Ti Minerals: Gippsland HMS Project
Resource Outline
Inferred Mineral Resource: without an HMS
assemblage estimate
Inferred HMS assemblage Mineral Resource
Orange Zone
Inferred Resource:
360Mt @ 2.7% THM
inc 15% zircon, 4%
rutile and 50%
combined titanium
minerals (see page 13)
Total Inferred
Resource
1.7 Billion tonnes @
2.2% THM (see page 13)
50km2 Area –
HMS Resource
15
Zircon-Ti Minerals: Gippsland HMS Project
Block Model Resource Cross Section
Extensive thick zones of
>1% THM
16
Zircon-Ti Minerals: Gippsland HMS Project
Next Steps
April 2012
Maiden JORC Resource (AMC)
Commissioned & commenced Scoping Study (R.J. Robbins)
May 2012
Metallurgical testwork including slimes (R.J. Robbins)
Marketing report – Zircon & Ti Mineral product specifications (TZMI)
Initial mineable resource & mining studies (AMC)
June 2012
Complete Scoping Study (R.J. Robbins)
July 2012
Finalise due diligence (Acquisition of Gippsland project)
August 2012
Board approval decision (on exercising option to purchase the Gippsland project)
17
Zircon: Supply / Demand
Robust fundamentals for the zircon sector
Outlook for zircon appears excellent
Source: TZMI
20% shortfall
by 2020
Forecast
18
Zircon-Rutile: Weipa HMS Project Overview
Weipa Heavy Mineral Sands (HMS) – Zircon & Rutile
Project (100% owned) in Cape York, Queensland
Urquhart Point Mining Lease applied for over shallow
(<3m) high grade (~7% THM) Zircon-Rutile deposit
Zircon + Rutile >40% HMS
Over 2,000sq km of EPM’s/EPMA’s
Feasibility & EIS process advanced
Zircon-Rutile production targeted late 2013 subject to
feasibility, permitting and financing
Opportunity for cashflow generation late 2013
19
Zircon-Rutile: Weipa HMS Project – Next Steps
WEIPA HMS
Mining Lease application submitted, permitting - ongoing
TLO Compensation negotiations & EIS submitted - ongoing
Feasibility Study – completion expected mid 2012
Subject to feasibility, permitting and financing – potential Zircon-Rutile
production start - late 2013
(Capitalise on high forecast zircon-rutile demand & prices)
20
Strong Financial Position Platform to Deliver Value to Shareholders
ASX
Code
Commodity Company MLM
%
No. Shares
MLM hold
Share
Price
Market Value ($)
MTE Coal MetroCoal
176,683,663
30.8% 64,300,000 39.5c $25.3M
CBX Bauxite Cape Alumina
140,800,900
19.1% 26,867,621 16.0c $4.3M
PMQ Copper Gold Planet Metals
59,717,114
37.0% 22,069,619 6.8c $1.5M
ORM Gold &
REE’s
Orion Metals
79,597,443
15.7% 12,552,658 9.2c $1.1M
Total Listed Investments $32.2M
Approximate Cash at Bank (27/04/2012)* $10.5M
Cash & Total Listed Investments $42.7M
Shares on Issue 132.4M
MLM Cash & Listed Investments/share $0.32
MLM share price (27/04/2012) $0.25
MLM Market Cap $33.7M
Metallica is dedicated to realising the underlying value of its mineral resources
to generate significant returns for shareholders
Cash + Listed assets alone ($43M) > Market cap ($34M)
Strong financial position
Future value drivers & growth: NORNICO + Zircon-Rutile HMS projects
*Includes $1M loan drawdown, with $4M remaining on facility
1. NORNICO “Tri Metal”
Nickel–Cobalt & Scandium Project
2. Zircon Rutile Heavy Mineral Sands Projects
Weipa HMS – 100% owned
Gippsland Zircon Ti Minerals HMS –
Option to Acquire 100% from Rio Tinto
3. Cash & Listed Investments ~$42M (27 April 2012)
21
Summary Metallica Minerals 3 Asset Groups
Metallica has a clear strategy for major growth
“Discover the hidden value in MLM”
Technical information & exploration results contained in this report has been compiled by Metallica
Minerals Ltd full time employee Andrew Gillies (B.Sc Geology) in the position of Managing Director. Mr
Gillies is a member of the Australasian Institute of Mining & Metallurgy & has relevant experience to the
mineralisation being reported on to qualify as Competent Persons as defined by the Australasian Code for
Reporting of Minerals Resources & Reserves. Mr Gillies consents to the inclusion in this report of the
matters based on the information in the form & context in which it appears
The NORNICO Nickel-Cobalt & scandium project Mineral Resource estimate(s) is based upon &
accurately reflects data compiled, validated or supervised by Mr John Horton, Principal Geologist, who is a
Fellow of the Australasian Institute of Mining & Metallurgy & a full time employee of Golder Associates Pty
Ltd. Mr Horton has sufficient experience that is relevant to the style of mineralisation & the type of deposit
under consideration & to the activity which he has undertaken to qualify as a Competent Person as
defined in the 2004 edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral
Resources & Ore Reserves’. Mr. Horton consents to the inclusion of this information in the form & context
in which it appears in this document.
The Gippsland Zircon-Rutile HMS Project Mineral Resource estimates have been prepared by Mr
Rodney Webster of AMC Consultants. Mr Webster BappSc, who is a competent person and a member of
the Australasian Institute of Mining and Metallurgy and has relevant experience in the style of
mineralisation being reported on to qualify as Competent Person as defined by the Australasian Code for
Reporting of Minerals Resources and Reserves. Mr Webster consents to the inclusion in this presentation
of the matters based on the information in the form and context in which it appears.
Competent Persons Statement
24
NORNICO: Scandium & Ni-Co Resource Statement (Updated 21st February 2012)
Scandium Resource Statement
Description Tonnes
(Mt)
Sc
(g/t)
Sc Metal
(t)
Kokomo
Measured 0.7 154 108
Indicated 3.8 121 460
Sub-total M&I 4.5 126 568
Inferred 4.4 91 400
Total 9.0 109 968
Lucknow
Measured 0.6 190 116
Indicated 6.9 153 1,065
Sub-total M&I 7.5 156 1,181
Inferred 0.3 99 26
Total 7.8 154 1,207
Combined Total
Measured 1.3 171 223
Indicated 10.7 142 1,525
Sub-total M&I 12.0 145 1,748
Inferred 4.7 91 427
TOTAL 16.8 130 2,175
Notes:
1. Scandium resource & nickel-cobalt resource are considered separately (no double counting)
2. Scandium resource reported at a cut-off grade of 70g/t Sc
3. The resources for Greenvale and Lucknow are reported at a cut-off grade (COG) of NiEq 0.7% (Ni
+ 2Co). This NiEq COG formula has been calculated using commodity prices of US$10/lb nickel
and US$20/lb cobalt, and recoveries of 90% for both nickel and cobalt.
The resources for Kokomo, Bell Creek South, Bell Creek North, Bell Creek Northwest,
Minnamoolka and The Neck are reported at a COG of NiEq 0.7% (Ni + 3Co). This NiEq COG
formula has been calculated using commodity prices of US$10/lb nickel and US$30/lb cobalt, and
recoveries of 90% for both nickel and cobalt.
The rationale for using different formulas is because these resource estimates were calculated at
different points in time. The commodity prices adopted in each instance were considered
reasonable at the time of calculation. It should be noted that the spot price for nickel and cobalt
varies constantly. The rationale in using a NiEq COG is to ensure that both significant nickel and
cobalt mineralisation are encapsulated in the resource estimate.
From Metallica's metallurgical testwork to date, there is reasonable expectation for the nickel and
cobalt to be recovered at similar recoveries to those achieved in testwork. Table contains minor
rounding errors.
4. For more detailed information on the Lucknow resource, please see MLM ASX release dated
21 Feb 2012
5. For more detailed information on the NORNICO Ni-Co resource, please see appendix 1 at the end
of this presentation
Nickel-Cobalt Resource Statement (see Appendix I)
Description Tonnes
(Mt)
Ni
(%)
Co
(%)
Ni Metal
(kt)
Co Metal
(kt)
Greenvale 8.0 1.04 0.08 83 6.6
Lucknow 3.6 0.57 0.19 21 6.8
Kokomo 16.3 0.67 0.12 108 19.4
Bell Creek S 9.1 0.97 0.07 88 6.3
Bell Creek N 2.3 0.83 0.03 19 0.7
Bell Creek NW 3.1 0.77 0.05 24 1.5
The Neck 0.8 0.84 0.03 7 0.3
Minnamoolka 7.1 0.80 0.04 56 2.6
TOTAL 50.3 0.81 0.09 406 44.2
Nickel-cobalt material can be supported by high grade scandium material feed
(and vice-versa)
NORNICO Ni-Co Resource Base – Appendix I (updated 21 Feb 2012 with new Lucknow Ni-Co Resource)
Nickel Deposit Million Tonnes
(Mt)
Ni
(%)
Co
(%)
Fe
(%)
Mg
(%)
In situ contained
Ni (t)
In situ contained
Co (t)
Greenvale Mine Site
Measured 2.6 1.08 0.09 22.0 3.9 28.4 2.4
Indicated 4.5 1.03 0.08 21.0 4.5 46.0 3.6
Inferred 0.9 0.99 0.07 19.0 5.5 8.9 0.6
Totals 8.0 1.04 0.08 21.1 4.4 83.3 6.6
Lucknow
Measured 0.9 0.65 0.17 24.5 2.2 5.6 1.5
Indicated 2.3 0.54 0.20 23.6 2.0 12.5 4.7
Inferred 0.4 0.60 0.13 28.8 2.0 2.5 0.6
Totals 3.6 0.57 0.19 24.4 2.1 20.6 6.8
Kokomo
Measured 1.3 0.81 0.17 20.4 4.6 10.5 2.2
Indicated 11.7 0.66 0.12 21.9 3.2 77.2 14.0
Inferred 3.2 0.63 0.10 19.1 3.0 20.2 3.2
Totals 16.3 0.67 0.12 21.2 3.3 107.9 19.4
Bell Creek South
Measured 8.9 0.97 0.07 11.7 7.5 85.8 6.2
Indicated 0.3 0.83 0.04 8.5 9.1 2.2 0.1
Inferred - -
Totals 9.1 0.97 0.07 11.6 7.5 88.0 6.3
Bell Creek North
Measured - -
Indicated 2.3 0.83 0.03 8.6 7.7 19.1 0.7
Inferred - -
Totals 2.3 0.83 0.03 8.6 7.7 19.1 0.7
Bell Creek Northwest
Measured - -
Indicated 3.1 0.77 0.05 15.7 5.2 23.6 1.5
Inferred - -
Totals 3.1 0.77 0.05 15.7 5.2 23.6 1.5
(Continued next page)
NORNICO Ni-Co Resource Base – Appendix I (cont’d) (updated 21 Feb 2012 with new Lucknow Ni-Co Resource)
Nickel Deposit Million Tonnes
(Mt)
Ni
(%)
Co
(%)
Fe
(%)
Mg
(%)
In situ contained
Ni (t)
In situ contained
Co (t)
Minnamoolka
Measured - -
Indicated 5.9 0.80 0.04 11.3 10.6 47.4 2.4
Inferred 1.2 0.78 0.02 8.9 10.2 9.0 0.2
Totals 7.1 0.80 0.04 10.9 10.5 56.4 2.6
The Neck
Measured - -
Indicated 0.8 0.84 0.03 8.8 6.5 7.1 0.3
Inferred - -
Totals 0.8 0.84 0.03 8.8 6.5 7.1 0.3
COMBINED NORNICO RESOURCE
Measured 13.6 0.96 0.09 15.3 6.2 130.3 12.3
Indicated 30.9 0.76 0.09 17.8 5.4 235.1 27.3
Inferred 5.7 0.72 0.08 17.7 4.8 40.6 4.6
TOTAL 50.3 0.81 0.09 17.1 5.5 406.0 44.2
Notes: Competent Persons Statement located at the end of this presentation
1.The resources for Greenvale and Lucknow are reported at a cut-off grade (COG) of NiEq 0.7% (Ni + 2Co). This NiEq COG formula has been calculated using commodity prices of US$10/lb nickel and
US$20/lb cobalt, and recoveries of 90% for both nickel and cobalt.
The resources for Kokomo, Bell Creek South, Bell Creek North, Bell Creek Northwest, Minnamoolka and The Neck are reported at a COG of NiEq 0.7% (Ni + 3Co). This NiEq COG formula has been
calculated using commodity prices of US$10/lb nickel and US$30/lb cobalt, and recoveries of 90% for both nickel and cobalt.
The rationale for using different formulas is because these resource estimates were calculated at different points in time. The commodity prices adopted in each instance were considered reasonable at
the time of calculation. It should be noted that the spot price for nickel and cobalt varies constantly. The rationale in using a NiEq COG is to ensure that both significant nickel and cobalt mineralisation
are encapsulated in the resource estimate.
From Metallica's metallurgical testwork to date, it is of the opinion that there is reasonable potential for the nickel and cobalt to be recovered and similar recoveries to those assumed have been achieved
in testwork. Block models for the above resources estimates were constructed by filling wire frame surfaces representing nickel laterite mineralisation boundary with 10m by 10m by 1m blocks. Nickel
(Ni) grades were estimated by ordinary riging using various search radius, depending on the drill spacing of the deposit. A minimum of 4 and a maximum of 15 composites were used to estimate each
block, with a maximum of 3 composites from any 1 drill hole. Therefore, at least 3 drill holes were used to estimate block grade values. At Bell Creek South, Minnamoolka and Kokomo a nominal 0.3%
Ni mineralised envelope was used as a hard boundary for Ni and Co block grade estimation. Hard boundaries were also used between the laterite and basement zones.
3. Variations due to rounding factors.
4. Iron (Fe) and magnesium (Mg) are included to indicate the overall ore quality, as both metals influence acid consumption as well as dissolved Fe, Mg and other metals, which are contaminants to nickel
loaded pregnant solution which is treated to produce a marketable nickel and cobalt intermediate product. As a rule, the lower the Fe and Mg in the laterite ore the better metallurgy and the ore is more
suited to heap leach processing.