LionOre Mining (LIM-T, LIM-A, LOR-L) has confirmed a NI 43-101 compliant indicated resource for the Selkirk deposit at Tati Nickel in Botswana, after an initial phase of resource drilling.
The news sent the company’s shares up 2.5% or 16 to $6.46 on roughly 1.3 million shares traded in Toronto on Aug. 8.
During the first half of 2006, Tati Nickel embarked on a drilling program surrounding the Selkirk mine which has been on care and maintenance since mining operations on the mined-out massive sulphide body ceased in 2002.
LionOre says results from the first phase of drilling confirm the presence of a large disseminated sulphide orebody down-plunge of the depleted massive sulphide body. A total of 17,642 metres of diamond drilling was completed.
In a release, LionOre’s president and chief executive, Colin Steyn, says the results enhance the future production profile and longevity of operations at Tati Nickel.
“Our priority now is to convert this resource into a reserve,” says Steyn, “and we remain extremely confident of extending this new resource even further.”
The company says the newly defined resource lends itself to open pit mining and says the likely cut-off will be in the 0.10% to 0.20% nickel range.
At a cut-off of 0.15% the resource is 165 million tonnes, 0.28% nickel and 0.24% copper for roughly 470,000 contained tonnes of nickel and roughly 400,000 tonnes of copper.
A pre-feasibility study is planned to be finished by the end of the year.
LionOre says step out exploration to test the potential of the larger scale resource will continue through 2006.
The company says it will focus on developing a further understanding of the structural elements of the deposit that will enhance the geological model and resource.
LionOre is a nickel producer with operations in Western Australia, South Africa and Botswana and a gold mine in Western Australia.
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