Perth, Feb 10, 2009 AEST (ABN Newswire) - Kagara Zinc Limited (ASX:KZL)(PINK:KGRZF) is pleased to announce that, using a 1% nickel cut off, an upgraded high grade indicated and inferred resource of 1.149 million tonnes grading 4.62% nickel (53,100 tonnes of contained nickel) has been outlined for the Lounge Lizard nickel deposit at Forrestania in Western Australia. This resource is contained within an overall indicated and inferred resource, at a 0.4% nickel cut off, of 7.549 million tonnes grading 1.37% nickel, containing 103,300 tonnes of nickel and represents a 215% increase in contained nickel metal on the previously announced high grade resource of 0.263 million tonnes grading 6.3% nickel.
-------------------------------------------------------- LOUNGE LIZARD MINERAL RESOURCES--------------------------------------------------------Category Tonnes Ni Co Cu Contained % % % Nickel--------------------------------------------------------Indicated 4,497,000 0.78 0.01 0.02 35,000Inferred 1,904,000 0.71 0.01 0.02 13,600Indicated 625,000 4.83 0.10 0.23 30,200Inferred 524,000 4.37 0.10 0.23 22,900Total 7,549,000 1.37 0.03 0.05 103,300--------------------------------------------------------
This phase of resource drilling is now complete and the deposit remains open in a number of directions, however sufficient tonnage has now been outlined to investigate development alternatives.
Lounge Lizard is located immediately adjacent to and contiguous with Western Areas' Flying Fox deposit which processed 61,000 tonnes of ore grading 4.6% nickel at a published cash cost of US$1.36 per pound of nickel in concentrate in the December 2008 quarter.
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