The ASIA Miner deputy editor John Miller recently took part in a mining tour of Northern Ontario in Canada as a guest of the Ontario Ministry of Economic Development and Trade.

During the tour he visited a number of mine sites and heard presentations from various mining companies, mining equipment manufacturers and mining service providers.

Xstrata’s Nickel Rim South Project is at the forefront of new developments around the historic mining city of Sudbury and is moving rapidly towards production in the second half of 2009.

The next edition of The ASIA Miner magazine – January-March 2009 edition, will include a feature on mining in Northern Ontario, including an in-depth look at the importance of the Nickel Rim South Project to the region.

Xstrata Nickel is completing 80,000 metres of underground resource diamond drilling in preparation for a new resource estimate and a full feasibility study at its Nickel Rim South Project in the Sudbury Basin, Northern Ontario, Canada.

The estimate and study are expected by the end of this year with the company planning to begin production in the second half of 2009.

The drilling is part of a five-year Nickel Rim South deposit definition project, which is nearing completion. It also includes 10,000 metres of underground lateral mine development which will be completed in the first half of 2009.

Nickel Rim South’s project manager Gregg Snyder says the definition drilling continues to increase the resource.

Based on surface and underground diamond drilling, the inferred resource is estimated at 14.5 million tonnes @ 1.6% nickel, 3.1% copper, 0.03% cobalt, 0.7 grams/tonne gold, 1.7 grams/tonnes platinum and 1.9 grams/tonne palladium.

The current definition drilling will enable the company to elevate the inferred resource to the measured and indicated categories.

The mining operations will focus on the rich footwall zone at Nickel Rim South where the grades are higher than at other operations in the Sudbury Basin.

Xstrata will be among the first to benefit from the footwall zone but there are other mines and companies around the basin exploring or developing operations based on nickel and copper-rich footwall deposits.

Nickel Rim South is the latest nickel project to be developed by Xstrata Nickel in the Sudbury Basin and is set to become the company’s flagship mine in the basin.

It will join the Craig Mine, Fraser Mine and Thayer-Lindsley Mine as Xstrata Nickel’s operating mines in the basin with the Fraser-Morgan prospect also under development and Onaping Depth prospect still to be developed. The company also operates the Strathcona Mill and the Sudbury Smelter. Nickel Rim South is just 9km to the north of the smelter.

Nickel Rim South was discovered in 2001 and includes a high-grade resource at a depth of between 1100 and 1800 metres. A feasibility study for a five year deposit definition project was completed in 2003 with this work beginning at the start of 2004.

Such is the company’s confidence in the proven geology of the Sudbury basin, in the exploration done to date and the early resource indications that it has been able to proceed with mine development above and below ground.

Site preparation began in 2004, the simultaneous sinking of two shafts began in 2005, the same year in which the surface plant was completed. Underground diamond drilling began in 2006 and underground lateral development in 2007.

The 7.6 metre diameter main shaft has been completed to its final depth of 1735 metres and the 6.1 metre diameter ventilation shaft to a final depth of 1685 metres. The fact that the shafts were sunk simultaneously is a rare feat and was achieved ahead of schedule and without a lost-time injury.

The mine infrastructure will be completed in 2009 with production expected to start at 60% in the second half of 2009 ramping up to full production in 2010. The capital budget for the development is Can$629 million and to date the project is under budget.

Infrastructure at the site has been designed and constructed to achieve production to meet the company’s aim of 1.25 million tonnes/year of ore.