BHP Billiton takes kick at Agata nickel project

Vancouver — Surigao joint-venture partners Mindoro Resources (MIO-V, MNODF-O) and Panoro Minerals (PML-V, POROF-O) have given the nod to BHP Billiton (BHP-N) to drill-test the Agata nickel-laterite project in the Philippines.

The senior will undertake a planned 32-hole, 640-metre drill program to evaluate the property’s nickel-laterite potential under a 180-day exclusivity right. If the evaluation comes back positive, BHP Billiton and the Surigao JV partners will negotiate an off-take agreement for the sale and purchase of nickel ore.

The major would bear the exploration costs, which would be recouped from future production should an agreement be reached and the project advance.

In addition to the two Canadian juniors, the Surigao JV includes private Philippine company Minimax Mineral Exploration. The JV’s 50-sq.-km Agata project in northern Mindanao contains a number of intrusive and limestone-hosted gold-copper occurrences in addition to the nickel-cobalt laterite.

The laterite covers over 11 sq. km of an ultramafic assemblage. Past sampling of historic exploration pits averaged 0.72% nickel and 0.07% cobalt over an aggregate depth of 23 metres.