Lifezone is conducting trials on its proprietary processing technology, Hydromet, which boasts a lower carbon footprint compared to traditional pyrometallurgical smelting methods. Previous trials have shown nickel recoveries exceeding 98.5%.
“This achievement, resulting from extensive testing in our in-house laboratory, reflects our commitment to innovation and bringing this world-class resource to market,” said Lifezone CEO Chris Showalter in a press release.
“This success underscores the effectiveness of our hydrometallurgical techniques and our commitment to sustainable metal production,” added Chief Technology Officer Mike Adams.
“The pilot plant performance has been exemplary, closely matching our process simulation models, and we are optimistic about the positive impact this will have on the Kabanga nickel project.”
Despite the promising advancements, Lifezone Metals’ shares fell by 7.0% in New York, bringing the company’s market capitalization to $634.5 million.
The Kabanga project is regarded as one of the largest and highest-grade undeveloped nickel sulfide resources globally.
To date, the company has completed over 583 kilometers of exploration and appraisal drilling. Previous owners, Glencore and Barrick, invested over $293 million to accurately delineate the deposit.
In 2021, Lifezone, which was then a private company, acquired the project, subsequently obtaining a mining license and securing backing from BHP, the world’s largest mining company, which now holds a stake in the initiative.
The deposit is estimated to contain 881,000 tonnes of nickel metal within 43.6 million tonnes of measured and indicated resources grading 2.02% nickel, as well as an inferred resource of 391,000 tonnes of nickel metal (17.5 million tonnes at 2.23% nickel).
The project will also include a Hydromet refinery in Kahama, Tanzania, and is expected to be developed in two phases, with Phase 1 targeting an annual production of 1.7 million tonnes and Phase 2 adding an additional 1.7 million tonnes. Further details will be included in a final feasibility study, which Lifezone aims to complete this quarter.
