trading halt: corporate transaction, page-8

1.02 million tonnes at 5.76% Ni, 0.29% Cu and 0.12% Co.


From:

http://www.kagara.com.au/irm/ShowStaticCategory.aspx?CategoryID=283&HideTopLine=True&masterpage=49


Operations - Lounge Lizard

Kagara Ltd acquired the Lounge Lizard Nickel Project in 2006 from LionOre Mining International Ltd for A$25 million. The project is contiguous with the successful Flying Fox Nickel Mine, which is owned and operated by Western Areas NL.

In 2008, Kagara Ltd announced an Indicated Resource of 7.55 million tonnes at 1.37% nickel (including 1.15m tonnes at 4.6% nickel) for Lounge Lizard, and in May 2009, entered into a landmark Heads of Agreement with Western Areas NL to access the ore body via Western Area’s Flying Fox decline.

During the June 2011 Quarter, 13,331t of ore grading 4.1% Ni was mined from Lounge Lizard. The ore was a combination of stope and development ore.

A total of 9,792t of ore grading 3.5% Ni was processed through the Western Areas Cosmic Boy treatment facility at a recovery of 91.1% resulting in the production of approximately 314t of nickel-in concentrate.

Stockpiles of nickel ore at the end of the year stood at 6,568t @ 4.81% Ni containing approximately 316t of nickel.

In September 2011, Kagara Ltd released an independently calculated Indicated and Inferred ore resource for Lounge Lizard deposit of 1.02 million tonnes at 5.76% Ni, 0.29% Cu and 0.12% Co.