• Home
• Corporate Profile
• Corporate Governance
• Financial
• Operations
• Exploration
• Investor Info
  • ASX Announcements
  • Resources and Reserves
• News
• Contact Us

 

Australian Mines (ASX:AUZ) is forecasting a continuation of improving production at its 100%-owned and operated Blair Nickel Mine following good progress with the development of the Blair Deeps orebody.

As such, production for the March 2008 quarter is anticipated to be the highest since June 2005.

The forecast result for Blair Mine for the March 2008 quarter 400 contained nickel tonnes.

The increased production is a direct result of a sustained capital injection to develop the Blair Deeps orebody.

As the Main Decline vertical development progresses at a rate of approximately 10 vertical metres per month, new operating levels will be opened up every 2.5 months.

The higher grade C01 and E03 shoots have out-performed reserve expectations this financial year, indicating the potential for higher grades of the ore bodies at depth. Grades on the C01 and E03 shoots have been achieving 5% Ni and 3.5% Ni respectively.

Further, at the 370 Level, E03 ore was significantly wide enough to allow development with the twin boom jumbo and not result in unacceptable levels of dilution. Mining with the twin boom jumbo, as opposed to traditional hand held mining, also allowed for much higher rates of extraction.

Nickel production at Blair is expected to increase throughout 2008 to 100 payable Nickel tonnes by the start of the financial year.

With the aim to target increased production in 2008/09, the company has taken delivery of a new 50 tonne Atlas Copco underground haul truck in February to add to the existing fleet. It has also ordered new equipment to replace the loader fleet occurring throughout the year to December 2008.

Australian Mines’ Chief Operating Officer, Mr Brett Young said, “we are very pleased with the performance of the Blair Mine of recent, with production expected to continue to grow this year.

“As such, the company anticipates a reduction in unit costs at the mine with the increase in production, leading to healthy cash flows in the second half of 2008”.