Proactive investors

Additional information

Additional	Information
Market:	TSX
Sector:	General Mining
Epic:	TSX-MIO
News:	Latest news
Web Site:	Mindoro Resources
Other Articles:	03-10-200817-09-200830-04-2008

Mindoro Resources – Agata keeps adding to resources

by Sam Kiri

Heady days appear to be over for stock markets but Mindoro Resources (TSX.V: MIO, Frankfurt: OLM) remains focused on its development efforts at the Agata North Nickel Laterite Project (Agata), Philippines. Mindoru released results from a further 31 drill holes with limonite horizon averaging 1.02 percent nickel, 0.14 percent cobalt and 46.85 percent iron over an average thickness of 1.93 meters. The underlying saprolite horizon averages 1.19 percent nickel over an average thickness of 5.56 meters. Grades and thicknesses are consistent with those previously reported and continue to be of potential economic interest. The latest assay results confirm that the nickel laterite mineralization extends over two kilometers in an east-west direction. To date, the mineralization has been defined for at least 1.2 kilometers in the north-south direction.

 

The project has an early-stage 43-101 compliant combined Measured and Indicated Resource estimate of 4.95 million wet metric tonnes (WMT) grading 1.18 percent nickel, 0.074 percent cobalt and 28 percent iron, at a cut-off grade of 0.80 percent nickel; containing approximately 92.4 million pounds nickel. Agata has an Inferred Resource of 4.37 million WMT grading 1.26 percent nickel, 0.047 percent cobalt and 20 percent iron, also at a cut-off grade of 0.80 percent nickel; containing approximately 92.5 million pounds nickel. This resource estimate covers about 25% of the Agata North laterite as mapped to date.

 

The objectives of the ongoing drill program are to completely drill out the Agata North resource; leading to an evaluation of the most applicable processing technologies, and selection of the optimal method to advance the project. Results of a further 50 drill holes are awaited and drilling is ongoing with four drill rigs. Current drill spacing is on 100 meter centers, adequate for at least inferred resource category and likely indicated resource category for much of the mineralization.

 

While much of the Surigao District nickel laterite production has been as direct shipping ore (DSO) to processing plants in Japan, Australia and China, several attractive alternatives are emerging for local processing, such as on-site blast or electric arc furnace for nickel pig iron production, ferronickel smelting, heap-leaching and an improved generation of High Pressure Acid Leach (HPAL) plants. HPAL technology is currently being used with great success by Sumitomo on its Philippine Coral Bay operation, and shows considerable promise for the local processing of Surigao ores. On-site processing has the potential to provide a significantly higher return from the resource than under the DSO scenario, which typically values the contained nickel at just 10 to 15 percent of the LME nickel price.

 

Given the proximity to China et al, there is very high potential for the development of a large integrated nickel laterite mining and processing industry in the Philippines, and for its resources to be part of this future. As such Mindoro’s attempts to develop Agata at an accelerated pace makes perfect sense.

Register here for more articles on Mindoro Resources

Copyright © Proactiveinvestors.com.au, 2008. All Rights Reserved. Site designed and maintained by Riskmedia Solutions 2008 Tehnicom Solutions
Privacy Policy | Terms & Conditions | Copyright Info

Proactiveinvestors is a leading global source of financial news, stock market news, business financial news, company data, comment and analysis with a particular emphasis on mining news and oil and gas news.