Weda Bay expands resource on Halmahera

Weda Bay Minerals (WDA-T) is finding the Santa Monica nickel-cobalt laterite deposit, on the island of Halmahera in Indonesia, is bigger and better than expected. The Santa Monica deposit is the largest-to-date of at least eleven deposits found on the property, that currently have a combined estimated measured and indicated resource of 133 million tonnes grading 1.37% nickel and 0.11% cobalt. There is an additional inferred resource of 82 million tonnes grading 1.33% nickel and 0.1% cobalt.

Weda Bay began step-out drilling in the northeast extension of the Santa Monica deposit in February; extensions to the south and southeast were also targeted. Results from fifty-five holes were received by mid-April. Highlights included: 31.1 metres grading 1.76% nickel and 0.04% cobalt; 22 metres grading 1.44% nickel and 0.19% cobalt; and 13.8 metres grading 1.58% nickel and 0.09% cobalt. Eleven of 55 holes returned no significant intersections; all other holes returned values ranging from 0.87 to 1.96% nickel and 0.01 to 0.45% cobalt over widths ranging from 0.8 to 31 metres.

In May, results from another 38 holes, confirmed that the Santa Monica deposit extends to the south along a southeast-trending ridge, as well as further to the northeast. Highlights from this drilling included 32 metres grading 1.48% nickel and 0.08% cobalt which included an intercept of 12.2 metres grading 2.11% nickel; and 11.7 metres grading 1.96% nickel, which included an intercept of 7.0 metres grading 2.22% nickel. Two holes returned no significant assays; others returned assays grading from 0.84 to 2.4% nickel over widths from 1 to 32 metres.

The measured and indicated resource of the Santa Monica deposit is currently 46.4 million tonnes grading 1.32% nickel and 0.12% cobalt; this needs to be revised to incorporate the new drillholes.

The nickel – cobalt mineralization is associated with laterite and saprolite. Metallurgical test work has been done this year by Lakefield Oretest in Perth and a combined Pressure Acid Leach (PAL), Atmospheric Leach (ATL) and Saprolite Neutralizaton (SN) process should lower the capital cost from that which was calculated in a former pre-feasibility study.

The Halmahera property is held under a contract of work between the Indonesian government and Weda Bay Nickel. Weda Bay Nickel is an Indonesian company owned 90% by a wholly-owned subsidiary of Weda Bay Minerals and 10% by Aneka Tambang, a publicly-listed company controlled by the Indonesian government.