Mirabela Santa Rita - Updated proven & probable reserve
Mon Nov 24, 1:57 AM
ca.news.finance.yahoo.com
TSX: MNB, ASX: MBN
Ordinary shares outstanding: 129,791,100
PERTH, AUSTRALIA, Nov. 24 /CNW/ - Mirabela Nickel Limited (TSX: MNB, ASX: MBN) is pleased to announce an updated Proven and Probable Reserve for Santa Rita as follows:
Santa Rita Proven and Probable Reserves November 2008
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JORC Reserve Mt Ni Cu Co Pt (ppb)
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Proven 15.1 0.65% 0.16% 0.017% 108
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Probable 105.9 0.59% 0.16% 0.015% 89
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Total 121.0 0.60% 0.16% 0.016% 91
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Contained nickel - 726,000t (1,600 million lb)
Strip ratio - 7.2 to 1
Weighted average recovery - 70.2% Ni
Attached are the proposed Mine Production Schedule (Table 1.1) and Plant Production Schedule (Table 1.2).
The Reserve estimate is based upon the Potential Mill Feed Resource Estimate (pit optimised resource) announced in September 2008 as follows:
Measured and Indicated Resource - 130mt grading 0.60% Ni and 0.16% Cu
Inferred Resource - 20mt grading 0.60% Ni and 0.16% Cu
Strip ratio - 7.6 to 1
The Reserve estimate cannot include the 20mt of Inferred Resource (located at the base of the resource pit shell) and therefore uses a smaller pit design based only upon the Measured and Indicated Resource. An additional 11,000m of in-fill drilling is required to convert this Inferred Resource to Indicated, whereupon the Reserve estimate is likely to be upgraded to a larger pit broadly in line with that used for the resource.
The recent pit optimisation work highlights the need for further drilling in the Central deeps area, where the only constraint on the pit driving deeper appears to be a lack of data. Based on recent drilling results, the Southern high grade zone is broadening with depth particularly to the north into the Central deeps area. Accordingly, there remains the potential for at least one more substantial in-pit resource upgrade. An additional 8,000m of Pit Extension drilling is planned in this area once resource drilling recommences.
The final pit design was based on a pit optimisation shell run at a nickel price of US$7.00 lb (discounted) (Lodged on the Company's website at mirabela.com.au. The final pit is 2,300m long in the north-south direction and 1,250m wide in the east-west direction. The base of the pit is 555m vertical depth (from the eastern surface), and the total surface area is about 173 hectares.
The conversion of resources to reserves (as defined by the Canadian NI 43-101 and Australian JORC mining codes) requires detailed estimates of economic and physical parameters for mining. The resultant average owner-operator mining costs (US$ per tonne of material) are as follows:
Operating cost - $1.20/t*
Capital allowance - $0.24/t
Total mining cost - $1.44/t (or $11.85 pt ore)
* based on a long term exchange rate of R$2.20 to the US dollar
This is a modest increase in average mining costs relative to the Company's maiden reserve announced in January 2008, mostly attributable to the greater average depth of the pit. Also, about 10% of the total material movement will be by contractor mining to reduce the owner mining fleet requirements in peak years where material movement exceeds 55 million tonnes. The contractor mining cost is estimated to be US$1.57/t.
The Reserve is based on a plan to mine and process 6.4 million tonnes of ore per year, with a peak total mining rate of about 78 million tonnes per year. The ore will be treated through a conventional sulphide ore nickel concentrator currently under construction and scheduled for completion in mid 2009. The product from this processing facility will be a 13% nickel concentrate.
The detailed analysis carried out for the Reserve estimate will be included in an updated Santa Rita NI 43.101 report that will be published within the next 45 days.
(signed) (signed)
Nick Poll Craig Burton
Managing Director Corporate Director
Background
Mirabela Nickel Ltd owns 100% of the world class Santa Rita nickel sulphide project and is listed on the Australian and Toronto stock exchanges. With a JORC Reserve of 121mt grading 0.60% Ni for 726,000t of contained Ni, Santa Rita is the largest nickel sulphide discovery world-wide in the last 12 years.
Construction of a 6.4 mtpa nickel sulphide concentrator commenced in November 2007 and is currently 65% complete. The plant will produce 18,500 tpa of nickel in a sulphide concentrate from one open-cut mine starting from mid 2009 increasing to 26,000 tpa by mid 2010. At this rate of production the project will have a mine life of about 20 years.
The information in this report that relates to mine scheduling studies, ore reserve and mining costs estimation is based on information compiled by Carlos Guzman who is a professional Mining Engineer and Project Manager with NCL Brasil and a Member of the Australasian Institute of Mining and Metallurgy and is a Qualified Person in accordance with NI 43-101. Carlos Guzman is a consultant to Mirabela Nickel Limited. Mr. Guzman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
All other technical information in this report has been reviewed by Nicholas Poll, who is a Member of the Australasian Institute of Mining and Metallurgy. Nicholas Poll is the Managing Director of the Company. Nicholas Poll consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Caution Regarding Forward Looking Statements: The forward-looking statements made in this announcement are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements, including but not limited to those with respect to reserve targets or the development of a mine at Santa Rita and the Company's capital expenditures and estimated future production involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of nickel, the actual results of current exploration, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filed documents.
TABLE 1.1 - MINE PRODUCTION SCHEDULE
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Mined Ore
Mined Ore (Ktonnes)
------------------------ Waste Total Strip -----------------
Mining Ore Nickel Nickel Ktonnes Ktonnes Ratio Direct To
Year Ktonnes (%) (ktonnes) Tipping stockpile
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Y00 357 0.697 2.49 7,643 8,000 21.40 - 357
Y01 1,160 0.679 7.9 5,840 7,000 5.04 580 580
Y02 5,898 0.580 34.2 36,652 42,550 6.21 2,949 2,949
Y03 6,400 0.606 38.8 48,600 55,000 7.59 3,200 3,200
Y04 6,400 0.544 34.8 48,600 55,000 7.59 3,200 3,200
Y05 6,400 0.611 39.1 48,600 55,000 7.59 3,200 3,200
Y06 6,400 0.595 38.1 51,600 58,000 8.06 3,200 3,200
Y07 6,400 0.579 37.1 48,600 55,000 7.59 3,200 3,200
Y08 6,400 0.585 37.5 68,600 75,000 10.72 3,200 3,200
Y09 6,400 0.561 35.9 71,440 77,840 11.16 3,200 3,200
Y10 6,400 0.565 36.2 48,600 55,000 7.59 3,200 3,200
Y11 6,400 0.578 37.0 48,600 55,000 7.59 3,200 3,200
Y12 6,400 0.571 36.6 48,600 55,000 7.59 3,200 3,200
Y13 6,400 0.624 39.9 48,600 55,000 7.59 3,200 3,200
Y14 6,400 0.690 44.1 48,600 55,000 7.59 3,200 3,200
Y15 6,400 0.620 39.6 69,209 75,609 10.81 3,200 3,200
Y16 6,400 0.616 39.4 69,208 75,608 10.81 3,200 3,200
Y17 6,400 0.571 36.6 36,816 43,216 5.75 3,200 3,200
Y18 6,400 0.627 40.1 11,237 17,637 1.76 3,200 3,200
Y19 6,400 0.618 39.6 6,258 12,658 0.98 3,200 3,200
Y20 4,779 0.661 31.6 3,192 7,970 0.67 2,389 2,389
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Total 120,993 0.600 726.4 875,096 996,089 7.23 60,318 60,675
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TABLE 1.2 - PLANT PRODUCTION SCHEDULE
Plant Feed
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Mining Ore Nickel Nickel Copper Cobalt Paladium Platinum Gold S
Year Ktonnes (%) (ktonnes) (%) (%) (ppb) (ppb) (ppb) (%)
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Y01 1,517 0.683 10.4 0.163 0.018 44.7 119.3 71.9 0.00
Y02 5,898 0.580 34.2 0.152 0.016 35.4 81.2 49.9 0.00
Y03 6,400 0.606 38.8 0.148 0.016 42.2 93.6 56.8 0.00
Y04 6,400 0.544 34.8 0.144 0.014 58.2 99.5 58.4 0.00
Y05 6,400 0.611 39.1 0.153 0.016 50.4 90.9 57.6 0.00
Y06 6,400 0.595 38.1 0.152 0.016 44.6 91.1 55.7 0.00
Y07 6,400 0.579 37.1 0.151 0.016 44.8 94.6 57.2 0.00
Y08 6,400 0.585 37.5 0.151 0.016 46.4 97.6 57.8 0.00
Y09 6,400 0.561 35.9 0.150 0.015 37.2 78.1 46.9 0.00
Y10 6,400 0.565 36.2 0.153 0.015 31.9 67.4 44.2 0.00
Y11 6,400 0.578 37.0 0.156 0.015 36.2 82.5 52.1 0.00
Y12 6,400 0.571 36.6 0.156 0.015 32.9 78.3 53.0 0.00
Y13 6,400 0.624 39.9 0.163 0.016 49.9 102.3 68.2 0.00
Y14 6,400 0.690 44.1 0.172 0.017 63.0 138.2 82.6 0.00
Y15 6,400 0.620 39.6 0.167 0.016 44.2 96.0 66.2 0.00
Y16 6,400 0.616 39.4 0.168 0.016 36.0 82.5 59.1 0.00
Y17 6,400 0.571 36.6 0.162 0.015 34.6 73.5 51.8 0.00
Y18 6,400 0.627 40.1 0.172 0.016 37.4 89.6 65.3 0.00
Y19 6,400 0.618 39.6 0.166 0.016 32.6 85.3 60.0 0.00
Y20 4,779 0.661 31.6 0.177 0.016 41.4 107.0 69.3 0.00
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Total 120,993 0.600 726.4 0.159 0.016 42.1 91.2 58.6 0.00
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Nickel Recovered
Mining Recovery Nickel
Year (%) (ktonnes)
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Y01 70.9 7.4
Y02 68.9 23.6
Y03 71.1 27.6
Y04 67.6 23.5
Y05 67.6 26.4
Y06 66.8 25.4
Y07 68.0 25.2
Y08 68.7 25.7
Y09 67.1 24.1
Y10 69.4 25.1
Y11 69.9 25.9
Y12 70.9 25.9
Y13 67.7 27.0
Y14 68.1 30.0
Y15 71.6 28.4
Y16 73.8 29.1
Y17 72.7 26.6
Y18 74.9 30.0
Y19 74.7 29.5
Y20 75.2 23.8
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Total 70.2 510.3
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Contacts
Australia contact: Nick Poll or Craig Burton
Telephone: +61 8 9324 1177
nickp@mirabela.com.au
craigb@mirabela.com.au
Australia contact (media): Caroline de Mori
Purple Communications
Telephone: +61 8 9485 1254
cdemori@purplecom.com.au
Toronto contact (media): Eric Tang
Porter Novelli
Telephone: (416) 422-7200
eric.tang@porternovelli.com |
