LionOre Mining International Ltd. confirms a new substantial NI 43-101 compliant Indicated Resource for the Selkirk deposit at Tati Nickel in Botswana, after an initial phase of resource drilling.
During the first half of 2006, Tati Nickel embarked on a drilling program surrounding the Selkirk mine which has been on care and maintenance since mining operations on the mined-out massive sulphide body (MSB) ceased in 2002. The positive results from the first phase of resource evaluation drilling confirm the presence of a large disseminated sulphide orebody down-plunge of the depleted MSB.
Colin Steyn, President and CEO of LionOre, commented “We are enormously encouraged by the potential of this large resource at Selkirk to substantially enhance the future production profile and longevity of operations at Tati Nickel. This will undoubtedly contribute positively to the overall project economics of the proposed ActivoxÂ® and DMS projects at Tati Nickel. Our priority now is to convert this resource into a reserve and we remain extremely confident of extending this new resource even further.”
Drilling has confirmed the continuity of a thick package of gabbro hosted disseminated sulphides around and down-plunge of the underground mine. The mineralization is typically blebby or stringered, with thin lenses of massive sulphides in places. The bulk of the disseminated sulphides contains nickel values of around 0.3%, with massive sulphide lenses yielding nickel tenors in excess of 2%. In some places massive sulphides have been intersected below the footwall contact. These remobilized sulphides are generally enriched in chalcopyrite and are often associated with shearing. During the period, a total of 17,642m of diamond drilling was completed.
During this drilling programme, bulk metallurgical samples were taken from the disseminated sulphide zone at Selkirk to assess the ore upgrade potential. Metallurgical testwork carried out by Mintek in South Africa, incorporating both dense media separation (DMS) and flotation technologies, has indicated that via an integrated DMS & flotation circuit, recoveries of 72% can be achieved. Further work is planned to demonstrate the above findings on a range of Run of Mine (ROM) feed grades in order to finalize the design process route. These findings support the potential for a significant long-term feed source that will complement the overall DMS and ActivoxÂ® projects at Tati by significantly extending the life of mine.
It is planned that a pre-feasibility study will be completed by year end. Attention will now focus on converting the mineral resource into a reserve. This will require detailed design and further investigation of optimal mining and processing routes to integrate this deposit with the overall DMS and ActivoxÂ® strategies being pursued at Tati Nickel.
Validation of the drilling and sampling database and the requisite QC/QA protocol was undertaken on site under the supervision of Mr. K. Botepe, the Tati Nickel Exploration Manager. The resource estimate has been independently prepared by Lower Quartile Solutions (Pty) Ltd and is compliant with the requirements of Canadian National Instrument 43-101.
Step out exploration to test the potential of the larger scale resource will continue through 2006. Attention will be focused on developing a further understanding of the structural elements of the deposit that will enhance the geological model and resource. The continuing drill program will test indicated geophysical anomalies in the peripheral and deeper extensional components of the deposit.
Information in this report relating to exploration results is based on data compiled or reviewed by Mr. K. Botepe (Manager Exploration, Tati Nickel Mining Company (Pty) Ltd, an 85%-owned subsidiary of LionOre Mining International) who is a member of the Australasian Institute of Mining and Metallurgy. Mr. Botepe has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves” and The SAMREC Code (South African Code for Reporting Mineral Resources and Mineral Reserves) and is a Qualified Person as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
The above Mineral Resource was compiled by Mr. D. Ferreira (a full time employee of LQS (Pty) Ltd.) as the Qualified Person. Mr. Ferreira has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves” and The SAMREC Code (South African Code for Reporting Mineral Resources and Mineral Reserves) and is a Qualified Person as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
LionOre is an international nickel producer with operations in Western Australia, South Africa and Botswana and a gold mine in Western Australia. The Company also owns a proprietary and environmentally friendly hydrometallurgical process called ActivoxÂ®.
Certain statements contained herein are forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: exploration, development and operating risks, uninsurable risks, ore reserve and resource estimates, additional funding requirements, foreign countries and regulatory requirements, and environmental regulation and liability. For further information concerning certain such factors, see the Company’s most recent annual information form filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com. The Company disclaims any intent or obligation to update any forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements.
LionOre Mining International Ltd. – Colin Steyn
UK / Europe
President & CEO
+44 (0) 20 7590 8888
LionOre Africa – Peter Breese
+27 (0) 11 463 4223
LionOre Mining International Ltd. – Ted Mayers
Chief Financial Officer
+1 416 777 1670
Source: LionOre Mining International Ltd.