Perth, Jan 29, 2009 AEST (ABN Newswire) - Northern Mining Limited (ASX:NMI) has a very positive outlook for its future. Future global demand for gold looks strong, highlighting the high potential of our Blair North gold and nickel project in Western Australia and the Radzimowice gold project in Poland. It is our aim for 2009 to prepare our exploration portfolio for the transition from explorer to producer in the near term.
During 2008, highlights included:
- Excellent gold and nickel results were reported from the Blair North drilling programme (see ASX Announcement dated 6 August 2008)
- 3D model was completed and work commenced at the Radzimowice Gold Project (see ASX announcement dated 26 August 2008)
- JORC compliant Resource Statement was determined for the Szklary Nickel Project (see ASX announcement dated 29 July 2008)
2008 was a very active year, providing NMI with a strong foundation for the next twelve months, a period in which we expect to deliver further exciting progress in the development of our projects.
Tremendous progress has been made at both of our Tier 1 projects during 2008, with the Blair North project developing into an exciting new gold and nickel discovery within 30 kilometres of Kalgoorlie. We have now completed 7,215 metres of reverse circulation (RC) and diamond drilling and 20,145 metres of rotary air blast (RAB) and aircore (AC) drilling at the East Kalgoorlie Project over the last 2 years. Accordingly, we have earned 36% interest in the project and expect to increase our interest to 75% by completing a further 7,785 metres of RC or diamond drilling over the next twelve months.
In Poland, work programmes have commenced on the Radzimowice Gold Project. Based on a 3D model designed by CSA Global, we are currently examining the potential down dip extension of the vein system, targeting a range of 1,500 - 2,500 ounces per vertical metre. CSA has designed a preliminary drilling programme to test this down dip potential.
In addition, we have signed a Heads of Agreement with the biggest company in Poland, KGHM, to look at the feasibility of jointly developing the Szklary Nickel Project in Poland. KGHM is the second biggest silver producer in the world as well as being one of the top ten (10) worldwide copper producers.
During 2008, we announced a JORC compliant Inferred Mineral Resource of 16.8 million tonnes @ 0.6% Ni (for 94,000 tonnes of contained nickel) at Szklary. Of the six kilometres of strike length of the Szklary deposit, this resource estimate is for only 3.7 kilometres of strike and we are confident that the final mineral inventory of contained nickel has the potential to be significantly greater than this figure, once the Feasibility Study has been completed. We expect to commence preliminary metallurgical testwork on Szklary core samples in early 2009.
We have previously advised the uranium exploration potential of our Durack Range Project (see ASX announcements dated 14 February 2007 and 21 March 2007). The agreement between the Western Australian Liberal and National parties to form a new Government in Western Australia, with a stated position of not being opposed to uranium mining in the state of Western Australia, has provided fresh impetus to NMI to revisit the uranium potential of the Durack Range Project. Planning of work programmes is underway for mapping of the HM bands in the Warton Sandstone and detailed radiometric surveys.
At our Northern Territory Milton Park Uranium Project, farm in partner NuPower Resources Limited announced during the last Quarter that the 2008 AEM surveys have been completed. The data are being processed and when complete will guide the identification of additional drill targets.
A successful Rights Issue completed in December raised A$0.57 million before costs of the issue. Funds raised will be used to enhance the Company's assets, retire short term debt and for working capital. Thank you to all participating shareholders for your strong support in the issue.
Contact
Ross Kestel
Telephone (08) 9244 8499
or
CRAIG DAWSON
CHIEF EXECUTIVE OFFICER
Telephone (08) 9244 8499
Facsimile (08) 9244 3166
Website www.northernmining.com.au
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