Australian Mines Limited (AUZ), through its 100%-owned subsidiary Blair Nickel Mine Pty Ltd (BNMPL), owns the Blair nickel sulphide mine located 30 km south east of Kalgoorlie and 32 km north of WMC's Kambalda nickel operations in Western Australia.
Operations were commenced in 1989 by WMC to mine a North-South trending ore surface called the Ø1 Surface. Subsequent exploration and development led to the discovery of a continuation of the ore surface in an East-West direction called the Ø3 Surface. WMC continued mining through to 1999 when they sold the mine to Macmahon Contractors who mined it until 2001. Total mine production over the 12-year period from 1989 totalled approximately 1,000,000 tonnes at an average grade of 2.53% nickel (~26,000 tonnes contained nickel metal). The mine was placed on care & maintenance until it was subsequently purchased and re-opened by Australian Mines Ltd in November 2003.
Ore on the main Blair shoots is typically found on the contact between the footwall basalt and the hanging wall ultra-mafic. The ore-bodies are a typical komatiite flow-type contacts with the nickel sulphide mineralisation occurring as narrow shoots of ore with plunge continuity. Typically the continuity of the shoots is variable with some shoots having a great vertical depth +1000m while others typically pinch and swell. Typical ore shoot strike is about the 20 to 25 metres along strike but can extend to as much as 50 metres. Ore types are disseminated (0.5% to 3.0% Ni), matrix (up to 6.0% Ni) and massive (up to 20% Ni).
The mine is accessed by a standard 1 in 7, 5.5m in height by 5.5m in width decline driven in the more competent footwall basalt. The decline is capable of taking trucks of up to 50 tonne capacity. Accesses to the ore body are driven at a smaller size and then the ore drives are driven with handheld rock drills or mechanised one boom jumbos at a nominal 2.8m in height x 2.2m in width. Stoping is conducted by using either half uppers or flat backing methods both using fill in the stope void for support and for miners to stand on to take successive lifts.
Currently ore is being mined from the main surfaces between the 400m RL (some 930m below surface) and 390m RL, as well as ore in the L shoot between the 860m RL and 835m RL.
Quarterly production at the Blair Mine over the last 2 years has averaged at approximately 10,000tonnes of ore grading ~3% nickel.
RESOURCES AND RESERVES
As of June 30th 2007 Blair Nickel Mine has a total calculated resource of 108,985 tonnes @ 4.9% Ni for 5,100 tonnes Ni, with an estimated mine life of at least 2.5yrs.
Blair Mine Resource (UNDILUTED)
|
Location
|
Category
|
Resource Tonnes
|
Nickel %
|
Nickel Tonnes
|
|
01 & 03 Surfaces - Sulphide Resource |
Measured
|
38,543
|
5.5
|
2,135
|
|
|
Indicated
|
34,658
|
4.0
|
1,374
|
|
|
Inferred
|
25,994
|
4.7
|
1,228
|
|
|
Sub-total
|
99,000
|
4.8
|
4,750
|
|
|
|
|
|
|
|
Area 57 - Sulphide Resource |
Measured
|
3,000
|
5.9
|
180
|
|
|
Indicated
|
3,000
|
5.8 |
170
|
|
|
Inferred
|
500
|
5.4
|
30
|
|
|
Sub-total
|
6,500
|
5.8
|
380
|
|
|
|
|
|
|
|
Blair Mine Sulphide Resource |
Total
|
105, 500 |
4.9
|
5,100
|
The information in the table above that relates to Ore Reserves is based upon information compiled by Mr Neil Warburton, who is a Member of The Australasian Institute of Mining & Metallurgy. Mr Warburton is a director of the company and has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and the activity in which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves” (the JORC Code). Mr Warburton consents to the inclusion in this report of the information, in the form and context in which it appears.
Recent resource drilling of Blair Deeps from 390m RL to as deep as 350m RL has indicated that the three shoots continue very strongly at depth.
Further resource definition drilling is scheduled to the end of 2007 targeting depths to the 300m RL.
In summary, mining in Blair Deeps continues with a strong outlook for future development to the 350m RL, positive results closer to the surface have led to continued mining of the L shoot (currently 860m RL and 835m RL levels). Both areas show no indication of diminishing nickel grade at depth.
The recently completed optimisation study has indicated that an open pit mine would make a significant profit with various treatment options producing 50,000 - 60,000 ozs of Au at a gold price of A$1,300/oz
Encouraging results have been received from recent drilling of East Shear North
exploration target which lies to the east of the main Mt Martin pit.
Australian Mines Limited (ASX:AUZ) is pleased to announce an increase of approximately 50% in gold resources at the Mt Martin mine.
Australian Mines Limited (ASX:AUZ) is pleased to announce that surface drilling will recommence at Mt Martin on Monday 14th June 2010 to further define new resources at Mt Martin.
Australian Mines Limited (ASX:AUZ) is pleased to announce very encouraging results from its latest RC drilling under the East Lode pit at the Mt Martin Project
AUZ Mines which announced encouraging results on 6th April from drilling its 100% owned Mt Martin gold project will be recommencing drilling this week.