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(Reuters) - Canada's HudBay Minerals Inc lowered resource estimate for the Fenix project in eastern Guatemala but with a higher nickel grade.
The company said the new resource estimate for the Fenix project is 36.2 million tonnes of 1.92 percent nickel, versus the November 2008 estimate of 41.4 million tonnes of 1.63 percent nickel.
"This new resource estimate and significant increase in the nickel grade enhances the overall economics of the Fenix project," HudBay said in a statement.
HudBay said it is in the middle of a 7,000 meter diamond drill program at the Fenix project, which it expects to complete in the second half of 2010.
The company said it is continuing to evaluate financing alternatives for Fenix.
HudBay shares closed at C$12.71 Wednesday on the Toronto Stock Exchange.
Reporting by Gowri Jayakumar in Bangalore; Editing by Gopakumar Warrier