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Western Areas has calculated an indicated 8600 tonnes grading 7% nickel at T Zero (North), which lies next to the decline being developed to mine the T1 deposit. T Zero contains a recoverable “mining inventory” 12,700t grading 4.4% nickel, according to the company, with extensions possible.
Elsewhere at Flying Fox, a significant increase in the standout T5 deposit is on the cards after intersection of a 15.7m zone of massive sulphides overlain by 19m of disseminated sulphides around 100m south and above the T5 ore reserve. True width is put around 7m.
Western Areas managing director Julian Hanna told MiningNews.net that the assays should be available in the next couple of weeks.
T5 is located at around 1000m below surface and contains a reserve of 849,000t grading 5.9% nickel.
Recent production estimates were for around 4000t of contained nickel in 2007; doubling in 2008; around 7500t in 2009 and 13,500t in 2010. With additional resources, Western Areas is now targeting output of around 12,000t in 2009 and 12,000t per annum from 2011 to 2015.
Operating costs have previously been forecast at $US1.85 per pound of nickel, with Western Areas having an offtake agreement with neighbouring nickel miner LionOre Mining International – on undisclosed terms.
Earlier this month, the company announced it had finalised a $A102 million debt facility to develop the project.
Meantime, Independence said drilling had picked up a “material extension” to the McLeay Shoot 2 at its Long operation near Kambalda.
Hits at McLeay Shoot 2, which contains a current reserve of 338,000t at 4.1% nickel, included 6m at 11.7% nickel (true width 3.7m) and 16.3m at 14.3% nickel (true width 3.5m).
The holes were 60m and 150m south of the reserve boundary, with the extension remaining open and definition drilling once a drill drive has been extended – planned for completion early in 2007.
Independence currently has attributable nickel production of around 5000-5500tpa.
Investors have backed both companies’ results, with Independence up 1.4% at $2.89 and Western Areas up 2.2% at $2.31 in midday trade.
