Feb. 04 - WDA.ASE - PROGRESS REPORT ON ORE RESOURCES AND METALLURGY
- HALMAHERA NICKEL PROJECT
A JOINT VENTURE BETWEEN WEDA BAY MINERALS INC. (90%)
AND P.T. ANEKA TAMBANG (10%)
VANCOUVER, Feb. 5 /CNW/ - WEDA BAY MINERALS INC.
Trading Symbol: ASE - ''WDA''
HIGHLIGHTS
A 250% increase in total resources to 92.1 million dry tonnes of 1.39% Ni
and 0.10% Co, including an indicated resource of 63.8 million dry tonnes of
1.51% Ni and 0.09% Co.
Additional potential in excess of 150 million dry tonnes
Preliminary mining studies indicate an initial seven year plant feed of
approximately 2% Ni equivalent, using a cobalt/nickel ratio of 4:1.
Further laboratory scale testwork confirms that the Halmahera laterites
are highly amenable to pressure, acid leach hydrometallurgy and have
favourable economic characteristics including:
- high initial ore grades
- extraction rates in excess of 95% for both Ni and Co
- very rapid pressure leach kinetics
- moderate acid consumption of 400 to 500 kg/t
- high scandium values of 27-44 ppm in plant feed of which 87% is
extracted by pressure leaching
The quality of the resource, coupled with the favourable metallurgy and
accessible location should ensure the project economics fall in the lowest
quartile of lateritic nickel producers.
Resource Estimation
A 250% increase in total resource has been achieved since the previous
news release on November 12 from 36.4 million dry tonnes of 1.53% Ni and 0.08%
Co to 92.1 million dry tonnes of 1.39% Ni and 0.10% Co including 63.8 million
dry tonnes of 1.51% Ni and 0.09% Co. This increase is the result of upgrading
the inferred resource to an indicated resource and bringing additional known
inferred resources to account. Material in the overburden containing above
0.1% Co but below 1.0% Ni has also been included in the total resource.
A total of 11,195 metres of diamond drill core in 808 drill holes
increases the confidence in the resource calculation. It is considered that
the 200 by 100 metre grid drilled areas can now be classified as an indicated
resource. This closer spaced pattern drilling means that comparisons can be
made between mineralisation encountered in the initial wide-spaced drill holes
and the drill indicated resources. This comparison has enabled the known
mineralisation in areas of wider spaced drilling (500 metres) to be classified
as an inferred resource category. The laterite material previously reported as
being in the overburden and with a cut-off grade in excess of 0.1% Co, has
been included in the total resource estimate as a high grade indicated cobalt
rich resource.
Additional potential, in excess of 150 million tonnes, has been
identified from mapping of laterites utilising helicopter surveys and ground
reconnaissance. Experience gained from the drilling of the Halmahera
laterites during the past 12 months allows a potential tonnage for these
undrilled laterites to be estimated without assigning any assay grades.
The following is a summary of resources drilled to date on Halmahera,
calculated on a 1% Ni cut-off and a dry specific gravity of 1.1 g/cc.
Prospect Dry Tonnes Nickel % Cobalt %
------------------------------------------------------
Area 2 3,200,000 1.72 0.07
Uni-Uni Hill 4,500,000 1.58 0.08
Tarzan West 7,500,000 1.44 0.08
Tarzan East 7,600,000 1.48 0.08
Sake River 15,200,000 1.51 0.06
Jira River 25,800,000 1.51 0.12
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Total 63,800,000 1.51 0.09
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Additional resources calculated at a 0.1% Co cut-off in the overburden
over the above resource:
Prospect Dry Tonnes Nickel % Cobalt %
------------------------------------------------------
Area 2 400,000 0.81 0.21
Uni-Uni Hill 1,000,000 0.79 0.19
Tarzan West 1,300,000 0.80 0.14
Tarzan East 1,400,000 0.81 0.17
Sake River 1,400,000 0.81 0.17
Jira River 4,500,000 0.83 0.22
------------------------------------------------------
Total 10,000,000 0.82 0.19
------------------------------------------------------
Inferred resources based on 500 metre drill spacing at Casuarina, Orchid,
Sake River West, Lipe River and the undrilled portion of Jira River (East)
Prospect Dry Tonnes Nickel % Cobalt %
------------------------------------------------------
Lipe River 8,000,000 1.15 0.14
Orchid 2,000,000 1.20 0.14
Casuarina 2,300,000 1.57 0.03
Sake West 2,000,000 1.69 0.08
Jira River 4,000,000 1.29 0.10
------------------------------------------------------
Total 18,300,000 1.28 0.11
------------------------------------------------------
Summary of Total Resources drilled to date:
Category Dry Tonnes Nickel % Cobalt %
(million)
-----------------------------------------------------------
Indicated Resources
At 1% Ni cut-off 63.8 1.51 0.09
-----------------------------------------------------------
Additional Indicated Resources
at 0.1% Co cut-off 10.0 0.82 0.19
-----------------------------------------------------------
Inferred Resources at 1%
Ni cut-off 18.3 1.28 0.11
-----------------------------------------------------------
-----------------------------------------------------------
Total Resources 92.1 1.39 0.10
-----------------------------------------------------------
150 million tonnes of potential additional Ni/Co bearing laterite
identified from helicopter mapping surveys and ground reconnaissance
Scandium
The scandium concentrations in the Halmahera laterite represent a
possible economic by-product.
Scandium is widely distributed in the earth's crust but normally at very
low concentration levels. The main uses for scandium and its compounds are in
highly specialised areas such as metal halogen lighting, laser crystals,
master aluminium scandium alloys, aluminium/scandium weldwire, high
temperature superconductors, catalysts and high intensity mercury vapour
lamps.
The future growth for scandium demand lies in the scandium/aluminium
alloys for use in the aerospace, automotive, sporting and other industries.
Location of Process Plant
Preliminary engineering studies support the concept of an on site
processing facility utilising the energy from the burning of sulphur for acid
generation to produce high grade nickel and cobalt products.
Contract of Work
As previously reported, President Suharto and the Government of Indonesia
have approved the Weda Bay Contract of Work (COW) and have tentatively set
February 17, 1998 as the date for signing.
Future Programme
Given the granting of the COW and the favourable metallurgical results,
the Corporation has decided to transport a bulk sample of typical lateritic
ore to North America for pilot plant evaluation. Results from this testwork
will be included into the Corporation's preliminary feasibility studies and
economic analyses when completed.
The Directors are encouraged by the overall results to date.
By Order of the Board
WEDA BAY MINERALS INC.
''LOUIS A. CLINTON'', PRESIDENT
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein. |
