Phoenix exploration receives $1-million boost

Following a successful exploration programme in 2000, Tati Nickel has approved an exploration budget of US$1 million to increase the reserves and extend the mine life at the Phoenix mine in Botswana.

Last year, 17 holes were sunk to follow up on an encouraging extension of the economic mineralization to the north of the current pit, and below the pit in the central deep zone.

The total indicated mineral resource is now 167 million tonnes averaging 0.29% nickel and 0.17% copper. An additional 3.2 million tonnes of inferred material, grading 0.42% nickel and 0.23% copper, lies in the southern part of the deposit.

A program of pit optimization and detailed design has resulted in a revision of mineral reserves, which are now pegged at 48.3 million tonnes (46 million tonnes at the end of 2000) grading 0.56% nickel and 0.34% copper. This extends the mine life through 2014.

A new, US$66-million wet concentrator will boost annual throughput to 3.6 million tonnes, effectively doubling production to about 12,500 tonnes of payable nickel per year. The expansion is slated for completion early next year.

The mine is part of the larger Tati nickel operations owned by Anglo American (AAUK-Q) with 43.35%, LionOre Mining International (LIM-T) with 41.65% and the government of Botswana with 15%.

The recent program will include 33 holes, totalling 14,200 metres of diamond drilling, targeting the near north, near south and central deep extensions of the ore body.

A series of reverse-circulation scout holes will also test a 4-km long nickel-copper anomaly associated with the Phoenix metagabbro. The anomaly is coincident with a geophysical anomaly.

LionOre’s attributable share of after-tax profits from the Tati operation amounted to $2.3 million in the first quarter of 2001, compared with $2.6 million in the first three months of 2000.