NEWS RELEASE FROM FRIDAY
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Attention Business Editors:
WEDA BAY MINERALS INC. UPDATE
VANCOUVER, May 30 /CNW/ - Weda Bay Minerals Inc.
Trading Symbol: ASE - ``WDA''
PROGRESS REPORT ON THE HALMAHERA LATERITIC DRILLING PROGRAM -
REGIONAL EXPLORATION/INFERRED RESOURCE DRILLING
A JOINT VENTURE BETWEEN WEDA BAY MINERALS INC. (90%)
AND P.T. ANEKA TAMBANG (10%)
- The Corporation has appointed Mr. Malcolm Baillie as Chief Operating
Officer effective July 1, 1997.
- The Corporation's ``Seriousness Bond'' of $US602,500 has been released
by the Indonesian Department of Mines.
- Inferred resource drilling commenced in April. Approximately 6.8
million tonnes of inferred laterite resource at a grade of 1.70% Ni and 0.07%
Co, using a 1% Ni cut off grade, has been defined in six weeks of drilling
Area 2 and Uniuni Hill.
- Overburden encountered in the resource drilling is generally thin or
absent and includes 400,000 tonnes of 0.82% Ni and 0.20% Co which would
probably be mined for its cobalt content.
- Drill program is to be accelerated to ensure that the inferred
resource drilling is on line to define in excess of 50 million tonnes by
December, 1997.
- The final results of the regional reconnaissance drill program of 75
holes were received.
- Additional reconnaissance drill holes planned in the extensive Jira
River laterite resource to determine the areal extent and continuity of the
high cobalt assays across the laterite.
REGIONAL EXPLORATION PROGRAM
OBJECTIVE
The objective of Weda Bay Minerals Inc. (Weda Bay) is to define a minimum
of 50 million tonnes of inferred laterite resource by December, 1997,
sufficient for either a ferro nickel smelter at Sorong in Irian Jaya and/or an
acid leach plant at either Sorong or on Halmahera Island.
The reconnaissance phase of the exploration reported on April 15,
identified 14 separate areas of laterite of which 10 were selected for initial
wide spaced (500 metre) drilling. These areas were selected for logistical
reasons such as available forestry tracks or proximity to the proposed port at
Cape Ulie.
Extensive highly prospective areas remain where either laterite has been
identified and not drilled or alternatively where the existence of laterite is
strongly suspected but as yet unchecked due to access difficulties or forest
cover.
RECONNAISSANCE DRILLING
Reconnaissance drilling has concentrated on the following relatively
accessible prospects. It is considered that a laterite resource in excess of
50 million tonnes will be defined within these prospects. Table 1 was
included in the previous press release and is repeated here for the purpose of
completeness as additional results have been received for Sake River West.
(Refer Appendix 1 and attached plans of the location of the reconnaissance
drill holes)
TABLE 1
PROSPECT AVERAGE GRADE AVERAGE No. OF PROSPECTIVE
THICKNESS HOLES AREA
OF LATERITE DRILLED (m)
(1% Ni cutoff) EFFECTIVE
/(TOTAL)
-------------------------------------------------------------------------
%Ni %Co
-------------
(2)Tarzan Hill 1.54 0.07 8.5 12 / (17) 3,500 x 500
(1)Area 2 1.70 0.06 8.3 6 / (6) 750 x 600
(1)Uniuni Hill 1.66 0.05 5.4 6 / (6) 1,500 x 750
(2)Sake River 1.37 0.08 7.9 12 / (12) 3,500 x 500
(1)Sake River West 1.64 0.07 8.7 8 / (8) 1,000 x 500
(3)Jira River 1.33 0.27 9.3 5 / (7) 4,000 x 2,000
(3)Orchid 1.20 0.14 4.5 4 / (4) 1,000 x 500
(3)Lipe River 1.15 0.14 7.8 7 / (9) 2,000 X 500
(1)Casuarina 1.57 0.03 3.5 1 / (3) 1,500 x 500
-------------------------------------------------------------------------
(1)Saprolite with thin limonite
(2)Limonite plus saprolite
(3)Mainly limonite. At Jira River only the eastern fringe of the
laterite has been drilled to date.
The total prospective area as outlined in Table 1 is interpreted through
the forest canopy and is in excess of 15,000,000 square metres. The
prospective area of each of these laterites will change as geological mapping
and drilling is completed utilising machete cleared walking, tracks. It is
believed that the extent of the prospective areas as outlined in Table 1 is
such that the targeted resource of a minimum of 50 million tonnes is
achievable. The area outlined to date is within the south east portion of the
tenement.
INFERRED RESOURCE DRILLING
The next phase of exploration on Halmahera to delineate an inferred
resource has commenced at Area 2 and Uniuni Hill. An initial 200 metre by 100
metre grid pattern is being utilised and is considered appropriate for an
extensive horizontal resource of this type. This work is slow because drill
rigs and water supply must be manhandled between sites.
The Corporation is assessing various ways in which the inferred resource
drilling can be expedited. Options include the use of additional test pits,
reducing hole depths by more detailed geological supervision and by increasing
the number of drill rigs and personnel.
INFERRED RESOURCE
Drill progress to date has defined an area of nickel bearing laterite of
480,000 square metres; at Uniuni Hill and 455,000 square metres at Area 2.
The grade and thicknesses are outlined in Table 2 below. The drill hole
results are reported in Appendices 2 & 3 and the drill hole locations are
shown on the attached plans.
TABLE 2
PROSPECT AVERAGE GRADE AVERAGE AREA
%Ni %Co THICKNESS (m squared)
(1% Ni cutoff)
(m)
--------------------------------------------------------------------
Area 2 1.80 0.07 6.34 455,000
(1)Uniuni Hill 1.61 0.08 6.83 480,000
-------
935,000
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(1)Based on the drill results received to date over 60% of the total
mapped area of laterite at Uniuni Hill
Accurate inferred resource tonnages are not yet available as specific
gravity (S.G.) determinations on the laterites are still being carried out.
Preliminary results based on thirty-nine, on site, weight determinations gave
an average wet S.G. of approximately 1.8 and two on site moisture estimates
gave moisture contents of the laterite of approximately 40%. The final S.G.
used to determine the inferred resource tonnage will depend upon accurate
laboratory testwork.
Using a preliminary S.G. of 1.1, the combined inferred resource drilled
to date is 6.8 million tonnes at a grade of 1.70% Ni and 0.07% Co using a 1%
Ni cut off grade. This resource is based upon 64 drill holes completed in six
weeks drilling with two drill rigs is a good conversion rate from potential to
inferred resource status.
Overburden encountered in the resource drilling is generally thin or
absent and includes additional inferred high cobalt and moderate nickel
resources which partly overlay the inferred resources. These amount to
approximately 400,000 tonnes at a grade of 0.82% Ni and 0.20% Co and will
probably be mined for the cobalt content.
Inferred resource drilling commenced on the Tarzan Hill laterite prospect
on May 23.
Access is being prepared into the extensive Jira River laterite to
determine its areal extent and to ascertain, by reconnaissance drill holes, if
the Jira River laterite is overall particularly rich in cobalt. The initial
holes drilled on the eastern edge indicate high cobalt assays with up to 0.86%
Co intersected over 6.60 metres in hole 23.
ACCESS
The Corporation is operating on Halmahera under an Interim Exploration
Licence (SIPP) which allows for preliminary geological assessment and shallow
rock sampling. All exploration work is carefully conducted to ensure these
conditions are not breached and to minimise the impact on the local
environment. Access to date into the various laterite prospects has been
facilitated by forestry tracks made by logging companies. All work off these
tracks is done by manually carrying the drill rigs and water supply between
sites. Once the Contract of Work has been granted and those areas identified
which have potential mineable reserves, then access can be upgraded.
ASSAY PROCEDURES
The Corporation is maintaining its practice of constantly monitoring its
assay results and arranging check assays to obtain accurate grades. This is
necessary because we are not yet satisfied that most commercial laboratories
have developed consistent procedures for the analysis of nickel and cobalt
bearing laterites.
Laterites are hygroscopic and adsorb water which may increase sample
weights by up to 15% in two days after drying leading to a low assay result.
Given the humidity in Indonesia and Townsville, where most assays are
performed, the sample preparation procedure is being reviewed to ascertain if
adsorption of water into the laterite samples has effected assay result. If
this is the case then the sample preparation procedure will be changed and
standardised.
Check results received from Service des Mines et de L'Energie de Nouvelle
Caledonie and P.T. Aneka Tambang confirm that the higher grade saprolite
samples (above 1.5% Ni) may contain between 10 & 15% higher nickel grades than
those reported by the standard AAS and I.C.P. methods used by Intertek in
Jakarta and Analabs Pty Ltd in Townsville. Cobalt check assays from Service
de Mines appear to confirm the results received from Intertek and Analabs.
CORPORATE
PERSONNEL
Malcolm Baillie. a metallurgical and chemical engineer with many years
experience in project development, including 20 years in Indonesia, will
become a full-time executive of Weda Bay Minerals as Chief Operating Officer
effective on July 1, 1997. Malcolm brings particular experience to the
development and operating areas of the project and to the logistical and
social understanding of Indonesia.
JOINT VENTURE AGREEMENT WITH ANEKA TAMBANG
Progress with our Joint Venture partner, Aneka Tambang has been good and
significant negotiations have taken place on the Joint Venture Agreement. It
is anticipated that the Joint Venture Agreement will be completed and signed
by the end July.
SORONG INFRASTRUCTURE
Meetings between the Corporation's proposed Chief Operating Officer,
Malcolm Baillie, and the Regent of Sorong has earmarked for Weda Bay's
exclusive use, subject to a final Memorandum of Understanding, an area of land
close to the natural gas supply for a nickel extraction plant. Negotiations
for the supply of gas by Pertamina, the Indonesian Petroleum Company, are
scheduled to resume in August once the Aneka Tambang Joint Venture agreement
is finalised.
SECURITIES PRESENTATIONS
The President, Mr Louis Clinton, the Vice President, Exploration, Mr John
Lynch, and Independent Director, Mr. Michael Garvey will be in Toronto and
Vancouver in the week prior to the Annual General Meeting on June 6 reviewing
the recent results of the Corporation's exploration programs with Securities
Analysts and Institutions.
By Order of the Board
WEDA BAY MINERALS INC.
``Lou Clinton''
LOUIS A. CLINTON, PRESIDENT
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
-30-
For further information: Louis A. Clinton (604) 687-6223, or (888) 933-2646, Fax (604)
687-8646
WEDA BAY MINERALS INC. has 6 releases in this database.
newswire.ca
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Comments? Anything - lets get a thread going?
Will there be a run-up to 5$ next week??? to 6$??
Any one year targets?
Does anybody have a good understanding of how to value cobalt and nickel? Gold - no problemo - ..but...
Any comments on grades?
The annual report for 96 sound as if everything is under control and that makes financing especially from since the mgmt is so huge, seem easy
Thanks in advance is anyone shares anything
VC |
