The nickel grade at what Giga already describes as one of the "largest undeveloped nickel-cobalt sulphide deposits in the world" has increased 3.5% and contained nickel grew 28.3%.
The measured and indicated resource now comprises 1.07Bt at 0.22% nickel for 5.2 billion pounds and 0.013% cobalt for 312.4 million pounds, while inferred stands about 5.5Blb nickel and 327Mlb cobalt.
Giga has cited a long-term incentive price of US$12/lb or $26,500 per tonne for nickel to get larger projects built, with nickel currently worth about $8/lb or $17,660/t.
"The successful execution of a focused drilling campaign combined with updated geological modelling has resulted in a refined and enhanced mineral resource estimate that, within the first three phases of mining outlined in the 2011 PEA, has confidence levels sufficient to support a prefeasibility study and ultimately a feasibility study if that is justified," president and CEO Mark Jarvis said.
The company said while it believed "certain elements" of its 2011 PEA were consistent with its current approach and ongoing evaluation of the project, it could "no longer be considered current".
The PEA had outlined initial capex of US$1.36 billion, an after-tax NPV (8% discount) of $724 million and IRR of 13.5%, estimating a cash cost of $4.26/lb payable nickel after cobalt credits.
It had used a base case nickel price of $8.50/lb and cobalt of $14/lb.
Cobalt is worth about $16.50/lb on the London Metal Exchange, having spiked to about three-times that value in early 2018.
Giga Metals has made a series of strategic board appointments recently, with former Sherritt International executive and head of strategy at Cobalt 27 Martin Vydra joining in November, ex-Vale SA senior executive Robert Morris appointed in January and Cobalt 27 chairman Anthony Milewski joining the board in April.
Cobalt 27 owns a 2% NSR on nickel and cobalt from Turnagain after paying $1 million and issuing 1.125 million shares in July 2018. It has meanwhile postponed its annual and special meeting, scheduled for this week, to October 10 for shareholders to vote on a proposed acquisition by Pala Investments to create Nickel 28 Capital Corp.
Giga had about C$4.2 million in working capital at June 30, having last raised $576,000 at 60c per unit in January 2018.
Its shares hit a 52-week high of 41.5c on news of the resource update last week and last traded at 40c, to capitalise it at $21.8 million (US$16.4 million).