Vancouver-based junior Skye Resources (SKR-V) has unveiled an updated resource estimate for the Exmibal nickel-laterite concessions in eastern Guatemala, which the company is acquiring from Inco (N-T).
The estimate was prepared by consultant Paul Golightly, who reviewed a major technical report completed by AMEC E&C Services in December 2003.
The measured and indicated saprolitic resource now stands at 63.3 million tonnes grading 1.84% while another 57.5 million tonnes of 1.66% nickel lie in the inferred category. The cobalt content was not determined.
In terms of liminitic resources, there are 24.5 million tonnes grading 1.31% nickel and 0.103% cobalt.
The estimate is based on more than 80,000 metres of drilling in over 6,800 boreholes or pits with more than 100,000 samples analysed. Resources were mostly evaluated using a cut-off of 1.6% nickel and a minimum thickness of 2 metres. The data were obtained from exploration programs carried out by Exmibal from 1960 to 1980.
The estimated resources are largely within the Niquegua concession, the initial term of which expires in August 2005. Exmibal has filed an application to renew these concessions or receive updated mineral tenements.
Skye plans carry out more drilling on the property to confirm the existing database and to provide new samples for multi-element chemical analysis.
Exmibal (from Exploraciones y Explotaciones Mineras Izabal) is owned 70% by Inco and 30% by the Guatemalan government. The concession includes a mothballed nickel smelter which has been closed for more than two decades.
In late September 2004, Skye struck a deal to acquire Inco’s stake by issuing shares and warrants until Inco has a 13.93% interest in the company. During a 5-year option period, if Skye decides to proceed with a nickel mine, Skye will have to pay Inco US$3.5 million and issue more shares.
Skye has been developing an atmospheric sulfuric acid leach process to treat Exmibal’s ore. A provisional U.S. patent has been filed, and extensive laboratory testing has been undertaken at SGS Lakefield Research.
Next door, Jaguar Nickel (JNI-T) has also been exploring for nickel laterites that it aims to process with its own proprietary atmospheric acid leaching process.
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