A feasibility report prepared for mining firm North American Nickel (NAN) has identified two watersheds that could be used to develop a hydropower project to power any new mining venture including mine, mill, camp site and harbor facility in Greenland.

The Hydropower Feasibility Assessment Study within watershed 06.H located on the eastern flank of NAN’s 100% owned Maniitsoq nickel sulphide project in southwest Greenland was prepared by EFLA Consulting Engineers. It includes technical, environmental and socio-economic studies and the documentation of physical and economical aspects of hydropower development.

The report examined local topography and provides an assessment of the development's viability, identified key areas of risk and suggests mitigation actions, to determine the economic viability of hydropower development at watershed 0.6H.

It identifies two subordinate watersheds with the capacity to supply a 12MW base load and an 18MW maximum load and generate 96GWh per annum for the Maniitsoq Project. The two watersheds included in this assessment have the capacity to supply the required hydroelectricity at an installed cost of US$5.621/kW and US$5.049/kW respectively at a CAPEX of between US$101.2 and US$90.9 million respectively. Operating expenses are 1-2% of CAPEX.  Both watersheds encapsulate or are close to priority nickel sulphide mineralized zones and the Seqi Port.

“Providing a long term, low cost, environmentally sensitive power solution is a critical step in demonstrating the NiS camp potential of the Maniitsoq project,” commented NAN CEO, Keith Morrison. “The EFLA report will form the basis of NAN’s discussions with the Ministry of Industry, Trade, Labour, and Energy and Nukissiorfilt (the Greenland National Energy Company)”.