The Forrestania project is Western Areas’ flagship asset and contains two of the highest grade operating nickel mines in the world, Flying Fox and Spotted Quoll. The high grade nickel ore is processed through the Cosmic Boy Concentrator which consists of a three stage crushing circuit followed by a single closed circuit ball mill and a system of flotation tanks and thickening/filtration system. Nickel recovery rates at Cosmic Boy average between 85% and 90%. Forrestania also includes a significant regional tenement package, considered highly prospective for further nickel discoveries.
Sandstorm’s royalty covers approximately 42 km2 of the Forrestania property including a portion of the Flying Fox mine. Production at Flying Fox commenced in 2006 and is an underground, long-hole stoping operation with low cash costs at under $3.00 per pound of nickel. The Flying Fox mineralization extends from 250 metres to 1.2 km below the surface and includes discrete independent orebodies with high grade massive sulphide as well as a large volume of low grade disseminated mineralization. Resource grades range from 3.9% to 6.2% nickel and increase at depth.
The June 2020 Probable Reserves at Flying Fox totaled 0.4 Mt at a grade of 3.0% for 12,020 tonnes of nickel. The Indicated Mineral Resource was 1.2 Mt at a grade of 3.8% nickel for 45,307 tonnes of nickel.
Production from the Flying Fox mine for the 2021 fiscal year (ended June 30) is 176,473 tonnes of ore at an average grade of 3.25% nickel with 5,739 contained nickel tonnes which includes 109,765 ore tonnes at 3.5% for 3,836 nickel tonnes from the Lounge Lizard tenement. Sandstorm’s royalty covers Lounge Lizard, which is a portion of the Flying Fox property.