ruighoek chrome mine feasibility drilling progres

6th July 2006
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
Ruighoek Chrome Mine Feasibility Drilling Progress Results:
• Confirms projected depth and thickness on LG6 chrome seam;
• On target for confirmation of known open cut resource;
• Environmental studies and community consultation requirements of feasibility study underway;
• Demand for chrome still strong;
• Transport and logistics planning proceeding.
The company is pleased to announce the latest drilling results from the Ruighoek Chrome Project. The feasibility phase drilling continues to confirm the expected depths and widths of the LG6 reef plus the existence of the LG6A reef in a number of the down dip locations. These results are expected to confirm the known open cut resource necessary for the recommencement of mining operations.
The company’s geological consultants, CCIC, will finalise the diamond drilling phase of the LG6 reef development drilling with the current hole RH70. The rig will then be moved to drill an exploration hole on the LG5 reef, which is stratigraphically below the LG6, and subcrops approximately 250 metres to the west of the LG6. The LG5 has similar dimensions to the LG6 reef and comparable resource potential. The position of the LG6 subcrop is currently being tested with several lines of percussion holes to confirm the projected position. All drilling on LG6 chrome seam is expected to be finalised this week.
Geological logging of the LG6 seam core and cutting for assay is currently being finalised with samples due to be dispatched to the laboratories this week. An initial visible appraisal of the quality of the chrome seam intersections by CCIC has been most encouraging. Once all geological data has been collated, the open cut LG6 chrome seam resource calculation will be finalised and pit designs completed. Optimisation of the pit designs should be completed soon after.
Company staff and consultants yesterday met with Department of Mineral and Energy (DME) regional officers to appraise them of progress with the exploration activities for the feasibility study and the environmental impact assessment. Company consultants in conjunction with the Batlhako Mining Limited’s Black Economic Empowerment partner, Aka Resources, have commenced the dialogue with the local community as part of the public consultation process.
The company’s South African based agent for the sales of chrome products, Metalloy Trading, continues to liaise with potential offtake partners. They are pleased to report that demand for the non-metallurgical chrome products anticipated from Ruighoek is still very strong not only locally in South Africa but with global consumers. A number of enquiries have also been received from independent consumers for product for
Suite B, 150 Hay Street, Subiaco, Western Australia 6008
Phone: (618) 9388 8430 Facsimile: (618) 9388 8450
metallurgical purposes. Metalloy is currently co-ordinating the transport and logistics requirements for the movement of the chrome products both locally and globally from site. As costs for both road and rail transport have moved in line with the recent rises in fuel costs, an optimised mix of transport is essential to maximise profitability.
The company is currently reconfiguring the design of the proposed new treatment plant following discussions with process consultants. The intention is to build more flexibility into the plant design to allow the company to produce a full suite of chrome products. The capital expenditure required for the new plant is not expected to vary greatly from that currently budgeted.
Whilst Chrome Corporation Ltd has received an offer to purchase the Ruighoek Project from a UK based entity, Blackthorn Mining plc, work by company staff and consultants on the feasibility study is continuing apace with a view to lodging an application for a mining licence with the DME as soon as practicable. Chrome Corporation has given an undertaking to Blackthorn to continue to develop the project to the production stage. Should the sale to Blackthorn proceed, construction of the new plant and commencement of mining would be delayed until after settlement, allowing Chrome Corporation to preserve funds to develop new opportunities.
The significant shareholding by Chrome Corp in Blackthorn will be a major asset, given the higher valuation of South African resource projects in UK listed companies.
Yours faithfully
Brian Thomas
Managing Director
Chrome Corporation Ltd
For further information please contact
Tel : (08) 9388 8430
Fax : (08) 9388 8450
Web : www.chromecorp.com
E-mail : [email protected]
Mr Brian Thomas is a member of the Australasian Institute of Mining and Metallurgy, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Brian Thomas is a full time employee of the company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Suite B, 150 Hay Street, Subiaco, Western Australia 6008
Phone: (618) 9388 8430 Facsimile: (618) 9388 8450
Ruighoek Chrome Mine Drill Hole Summary
Top of LG6A
Bottom of LG6A
Width of LG6A
Top of LG6
Bottom of LG6
Width of LG6
Final Depth
Comment
RH31
Diamond Core
13.4
13.77
0.37
29.31
30.1
0.79
33.45
Logged
RH32
Diamond Core
11.44
11.83
0.39
28.95
29.7
0.75
33.5
Logged
RH33
Diamond Core
36.6
37.21
0.61
33
Logged
RH34
Diamond Core
25.35
26.00
0.65
33.4
Logged
RH35
Diamond Core
23.69
24.18
0.49
26.22
26.59
0.37
27.25
Logged
RH36
Diamond Core
23.39
23.93
0.54
26.65
Logged
RH37
Diamond Core
Awaiting Logging
RH38
Diamond Core
Awaiting Logging
RH38RD
Diamond Core
Awaiting Logging
RH39
Diamond Core
Awaiting Logging
RH40
Diamond Core
17.5
18.8
1.3
22.2
Logged
RH41
Percussion
22.25
23.44
1.19
23.44
Logged
RH42
Percussion
0
24.23
Logged
RH43
Percussion
12.02
13.14
1.12
13.14
Logged
RH44
Diamond Core
16.14
16.97
0.83
19.3
Logged
RH45
Percussion
16.98
17.78
0.8
17.85
Logged
RH46
Percussion
23.43
24.35
0.92
24.35
Logged
RH47
Percussion
10.5
11.04
0.54
11.04
Logged
RH49
Diamond Core
9.8
10.63
0.83
14
Logged
RH50
Percussion
16.52
17.78
1.26
17.78
Logged
RH51
Percussion
14.23
14.95
0.72
14.95
Logged
RH55
Diamond Core
10.31
12.17
1.86
18.5
Logged
RH59
Percussion
13.46
15
1.54
15
Logged
RH61
Percussion
11.18
12.65
1.47
13.65
Logged
RH68
Percussion
13.26
14.14
0.88
14.14
Logged
RH70
Diamond Core
In Progress
RH79
Diamond Core
Awaiting Logging
Suite B, 150 Hay Street, Subiaco, Western Australia 6008
Phone: (618) 9388 8430 Facsimile: (618) 9388 8450
Suite B, 150 Hay Street, Subiaco, Western Australia 6008
Phone: (618) 9388 8430 Facsimile: (618) 9388 8450