Weda Bay boosts nickel-cobalt resource (December 11, 2000)

Weda Bay Minerals (WDA-T) has substantially increased the resource base at its nickel-cobalt laterite project on Halmahera island, Indonesia.

Indicated resources have doubled to 133 million tonnes grading 1.4% nickel and 0.1% cobalt. Additional inferred resources are estimated at 70 million tonnes of 1.29% nickel and 0.14% cobalt, giving an aggregate resource estimate of 204 million tonnes of 1.37% nickel and 0.11% cobalt.

This resource is contained in 11 target areas: SM, Area 2, Uniuni Hill, Tarzan Hill, Sake River, Sake River West, Lipe River, Jira River, Casuarina, Orchid and Big Kahuna.

For the SM deposit, Weda Bay estimates an indicated resource of 66 million tonnes grading 1.4% nickel and 0.09% cobalt, based on 2,625 metres of diamond drilling in 174 holes. The upper, limonitic portion contains 41 million tonnes of 1.2% nickel and 0.16% cobalt with a magnesium oxide content of 4.5%.

The junior has appointed Kvaerner Process (Australia) and Hatch Associates to be lead engineers in a bankable feasibility study, due for completion next December.

The US$18-million study is being funded by the OM Group (OMG-N), which holds a 19.9% interest in Weda Bay (T.N.M., Nov. 20/00).

At Sept. 30, Weda Bay’s cash position had grown to $5.2 million, whereas current liabilities stood at $2.3 million. For the first nine months of 2000, the company posted a net loss of $532,259 (2 per share) on income of $737,968, compared with a loss of $96,086 (1 per share) on income of $433,561 in the corresponding period last year.