[Development Plan] [Geological Setting] [Mineral Resources]
[Drill Program] [Qualified Person, Quality Control and Reports]
[Feasibility Study] [Hydromet Preliminary Assessment]

Project Background

Nickel deposits were identified in the Lake Izabal region of eastern Guatemala in the 1950’s and 60’s. In 1974, Inco commenced construction on the Exmibal nickel laterite mine and smelter. The plant, completed in 1977, was designed to process the saprolite portion of the ore body to produce a nickel sulphide matte in a single rotary kiln-electric furnace (RKEF) production line. In 1980, the Exmibal plant was shutdown and placed on care and maintenance due to a combination of high oil prices and low nickel prices. Mobile equipment was sold and major equipment was carefully mothballed with a potential future re-start in mind. Staff were retained on site to maintain facilities and rotate major equipment.

In 1992 Inco initiated a feasibility study to look at returning the Exmibal facility to its 1980 condition such that operations could be resumed as per the original design but a decision was made not to restart. On-site maintenance effort was continued.

Upon acquiring the project (renamed Fenix) in 2004, Skye initiated a preliminary assessment of alternatives for restarting production, and, based upon this assessment, initiated a feasibility study for a ferronickel project in 2005 which was completed in September 2006. Skye has also completed a preliminary assessment of a subsequent expansion using hydromettalurgy to process limonite.

The financing plan for the development of the ferro-nickel project is now being finalized.