PERTH (miningweekly.com) – First nickel concentrate has been produced at the Avebury project, in Tasmania, after the successful commissioning of the processing plant.

ASX-listed Mallee Resources on Wednesday reported that around 19 200 t of ore was at the run-of-mine stockpile, with a further 2 500 t on the fine ore stockpile. A further 58 500 t of ore have been processed, and 2 045 t of nickel concentrate have been produced at Avebury.

“This is an historic moment for Mallee which now joins the ranks of Australian nickel sulphide producers. The Avebury mine is distinguished within this peer group by having a majority of its power needs met by renewable energy sources,” said Mallee MD John Lamb.

Shipments to offtake partner Hartree Metals are expected to start once sufficient concentrate has been stockpiled. The size of each shipment depends on the destination and the nature of the arrangement between Hartree and its customer, but typically comprises many thousands of tonnes of concentrate. Once each shipment is compiled, it is closed off and the quality of product in the shipment is determined under the terms of the offtake agreement.

Lamb told shareholders that work is ongoing to optimise recoveries and concentrate grades consistent with Avebury’s commissioning plans and the currently stockpiled concentrate is intended to be blended with future concentrates prior to shipment occurring.

Mallee in July completed the acquisition of the Avebury project by acquiring all of the shares in Allegiance Mining, drawing down a $20-million debt facility and $10-million bridging loan facility to fund the acquisition.

Avebury is currently estimated to host a mineral resource of 29.3-million tonnes, grading 0.9% nickel and 229 parts per million cobalt. The project has been on care and maintenance since 2008, owing to the onset of the global financial crisis and the subsequent fall in nickel prices.