Perth, Jan 14, 2008 AEST (ABN Newswire) - Emerging nickel producer Nickelore Limited (ASX: NIO) has drawn up plans for the next phase of the exploration program to support the development of the Company's Canegrass Nickel Cobalt Project (CNCP) north east of Kalgoorlie.
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The program will aim to build on continuing positive results from the Canegrass Scoping Study due to be completed at the end of March 2008.
Nickelore announced its initial probable ore reserve estimate of 1.35 M tonnes @ 0.87% Ni, on 7 January 2008, based on infill drilling and pit optimization for Patch-Gulch, a former nickel mining pit expected to be the first Canegrass mining operation when the project begins production. Further resource evaluation this year will be aimed at identifying additional ore reserves and potential mine sites in adjoining areas.
In the meantime, the project's total mineral resource remains unchanged at 29.61 M tonnes @ 0.73%Ni and 0.06%Co (inclusive of the ore reserves).
Nickelore Managing Director Iggy Tan said the next phase of exploration would be designed to confirm the development potential for Canegrass. The work would include -
- conversion of more mineral resources to ore reserves,
- infill drilling to test the potential of mineralization around Patch Gulch and along strike to the south west and
- identification of new targets in the Company's highly prospective lease and mineral rights areas.
The exploration will complement Nickelore's continuing technical studies into heap leach processing of Canegrass ore.
"The scoping study results to date have met, or exceeded, all of our expectations and we remain confident of moving to the next feasibility study stage of the project in the first half of this year," he said.
The combined JORC compliant mineral resource statement for Mining Leases M24/290 and M24/39 within the CNCP using a 0.5%Ni cut-off grade is listed below:
Mineral Resource (JORC) EstimateIndicated 2.6 M tonnes @ 0.78%Ni and 0.06%Co.Inferred 27.0 M tonnes @ 0.7%Ni and 0.06%Co.Total 29.6(*1) M tonnes @ 0.73%Ni and 0.06%Co.Ore Reserve (JORC) EstimateProbable Ore Reserve(*2) 1.35 M tonnes @ 0.87%Ni
*1. Nickelore has the mineral rights to develop, mine, process and sell a total of 140,000 tonnes of nickel (equivalent to 20 M tonnes @ 0.7% Ni) from Mining Leases M24/290 and M24/39 within the Canegrass Nickel Cobalt Project.
*2. A "Probable Ore Reserve" is the economically minable part of an Indicated, and in some circumstances, a Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could be reasonably justified. (JORC Code).
Contact
TEL: +61-8-9481-2433
FAX: +61-8-9322-5907
WEB: www.nickelore.com.au
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