6th September 2006
Nickel resources increased by 45% at Blair Mine, WA
Brett Young
Chief Operating Officer
Australian Mines Limited
Tel: 08 9481 5811
For media enquiries contact:
Robert Williams
Farrington National
Tel: 02 9332 4448
Nickel resources increased by 45% at Blair Mine, WA
Australian Mines Limited (ASX: AUZ) today announced a significant upgrade to the resource base at the Company’s Blair Nickel Mine, near Kalgoorlie in Western Australia.
In a revised resource estimate for the mine, total resources increased by 45% to 109,000 tonnes at a grade of 5.19% nickel, for 5,660 tonnes of contained nickel.
Chief Operating Officer Brett Young said, “the Company is very encouraged by the substantial boost to resources and hence life of operations at the Blair Mine.
“We are in the very fortunate position of being a producer with a number of exploration programmes in process, at a time of record nickel prices with strong market fundamentals for the medium term.
“In addition, only current production is hedged, so our heavy exposure to the nickel price bodes well for our forward cash flows.”
The increase represents the resource base (JORC compliant) as of 30th June 2006, and takes into consideration production of 1447 Ni tonnes for the 2005/06 financial year. The Resources are calculated to a depth of 350mRL which is 80 metres below the deepest workings. The Blair Deeps ore lodes remain open at depth.
In a revised resource estimate for the mine, total resources increased by 45% to 109,000 tonnes at a grade of 5.19% nickel, for 5,660 tonnes of contained nickel.
Chief Operating Officer Brett Young said, “the Company is very encouraged by the substantial boost to resources and hence life of operations at the Blair Mine.
“We are in the very fortunate position of being a producer with a number of exploration programmes in process, at a time of record nickel prices with strong market fundamentals for the medium term.
“In addition, only current production is hedged, so our heavy exposure to the nickel price bodes well for our forward cash flows.”
The increase represents the resource base (JORC compliant) as of 30th June 2006, and takes into consideration production of 1447 Ni tonnes for the 2005/06 financial year. The Resources are calculated to a depth of 350mRL which is 80 metres below the deepest workings. The Blair Deeps ore lodes remain open at depth.
| Measured |
Indicated |
Inferred |
Total |
|||||||||
| Resource Est | t | Grade (%Ni) | Ni Metal (Tonnes) | t | Grade | Ni Metal | t | Grade (%Ni) | Ni Metal (Tonnes) | t | Grade (%Ni) | Ni Metal (Tonnes) |
| 30 June 2005 | 27,600 | 4.75 | 1,310 | 28,300 | 4.91 | 1,390 | 24,800 | 4.80 | 1,190 | 80,700 | 4.82 | 3,890 |
| 30 June 2006 | 45,800 | 4.77 | 2,185 | 31,600 | 5.72 | 1,810 | 31,600 | 5.27 | 1,665 | 109,000 | 5.19 | 5,660 |
Table 1 – Blair Nickel mine resource estimates
”Given the significant increase in resources, we have commissioned an independent consultant engineer to complete a total mine design to develop and mine these resources. Initial mine studies suggest mining of these resources will extend the current mine life for at least another 18 months,” Mr Young added.
Brett Young
Chief Operating Officer
Australian Mines Limited
Tel: 08 9481 5811
For media enquiries contact:
Robert Williams
Farrington National
Tel: 02 9332 4448
The information in this report that relates to Mineral Resources is based on information compiled by Mr E Poole who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Poole is a full-time employee of the company. Mr Poole has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Poole consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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