Brilliant Sees New Nickel Zone Develop at Lanfranchi

Vancouver — Underground drilling on the newly discovered Deacon zone at Brilliant Mining’s (BMC-V) Lanfranchi mine joint venture in Western Australia’s Kambalda region has cut additional high-grade nickel intercepts.

The first holes in the 16-hole resource definition program on the new zone returned intersections of 11 metres grading 2.25% nickel (hole HS251) and 17.1 metres of 4.12% nickel (hole HS236), with true widths calculated at 9.16 metres and 17.1 metres, respectively.

The Deacon zone, situated just west of and adjacent to the Helmut South orebody, currently being mined, was recently discovered by five holes returning long intercepts of nickel sulphide mineralization (up to 111 metres of 2.9% nickel). Brilliant was quick to point out that the orientation of the holes was not optimal and that they were expected to have a considerable down-plunge component, but the company is nonetheless excited about the new zone’s potential to add to the resource base.

The company fast-tracked its new hangingwall exploration drive from Helmut South into the Deacon zone to facilitate the planned 2,400-metre drill program. The 16 holes are expected to be complete by year-end.

Brilliant acquired its 25% interest in the Lanfranchi mining operations earlier this year by taking over private Australian company Donegal Resources, which held a one-quarter interest in the JV. Project partner Sally Malay Mining (SLLYF-O, SMY-A) holds the remaining 75% interest.

In its fourth quarter, ending Sept. 30, the mine produced a record 55,547 tonnes of ore at an average grade of 2.29% nickel for about 1,272 contained tonnes (about 2.8 million contained pounds) nickel.

Ore from the mine is directly shipped to BHP Billiton’s (BHP-N) nickel concentrator at Kambalda, located 42 km north, under a long-term ore tolling and concentrate purchase agreement whereby the major’s subsidiary, Nickel West, buys up to 350,000 tonnes of ore annually for processing. The agreement also includes guaranteed recoveries, mitigating any metallurgical risks that may arise.

Kambalda-type nickel deposits are komatiitic in origin, where high-grade massive sulphides are concentrated in footwall embayments of ultramafic flows. The mineralized lenses at Lanfranchi range from 50-500 metres long, 30-80 metres wide and 0.5-30 metres thick.

Shares of Brilliant Mining gained 6 on the news to close at 77 apiece on trading volume of over 400,000. The stock has traded in a 52-week range of 18-$1.15.