Crew Minerals intends to fast track its Mindoro project in the Philippines to allow for production of 60,000 tonnes per year of nickel.

The decision follows an independent technical desk top study, which recommended a staged development with stage one involving establishment of a two-autoclave high pressure acid leach (HPAL) plant for processing of limonite ore while stage two involves the addition of an atmospheric leach facility (ATL) for the processing of saprolite ore.

Stage one is projected at 37,000 tonnes per year of nickel and 3000 tonnes of cobalt as an intermediate product of mixed sulphides (MSP), using only two autoclaves, at an operating cost of US$2.36/lb nickel before cobalt credits.

Stage two will take production to 60,000 tonnes per year of nickel, also as MSP at an operating cost of US$1.82/lb before cobalt credits.

The stage one capital cost is estimated at US$1.4 billion, and includes 2 HPAL autoclaves, an acid plant, substantial infrastructure investments, initial investments for Stage two, and a contingency of 25%. The incremental cost of the Stage two expansion with an ATL circuit is estimated at US$300 million.

Aker Kvaerner has been awarded the lead contract for the project's pre-feasibility study, which is scheduled to be completed by the end of 2007. The main objective of the work is a study of the stage one HPAL facility, and a scoping-level study of the stage two ATL and saprolite neutralization. The Pre-feasibility study is on schedule.

The study will lead to a Bankable Feasibility Study which is estimated for completion by the end of 2008, together with a full Environmental Impact Statement and a Social and Environmental Impact Assessment.