ACCLAIM EXPLORATION NL 2002-08-27 ASX-SIGNAL-GHOMEX - Perth...

ACCLAIM EXPLORATION NL 2002-08-27 ASX-SIGNAL-G

HOMEX - Perth

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CORPORATEFILE.COM.AU

Acclaim Exploration NL announced in its June 2002 Quarterly Report
that the mineral resource for the nickel oxide mineralisation at
Wingellina had been upgraded to 226 million tonnes at 1.0 percent
nickel, using a cutoff of 0.5 percent nickel. This places Wingellina
in the top 20 nickeloxide laterite resources in the world. Should
the Wingellina resource and project be categorised as similar to the
Western Australian laterite projects?

CHAIRMAN ED ESHUYS

The geochemistry of Wingellina's nickel oxide mineralisation differs
significantly from that of its Western Australian neighbours.
Testwork has identified that Wingellina's chemistry attributes
several processing advantages.

Limonitic nickel oxide mineralisation occurs in the top 100 metres at
Wingellina and represents 55 percent of the 226 million tonne
resource. This limonitic mineralisation is chemically different to
the lateritic mineralisation of the Western Australian laterite
deposits - with a much lower MgO content and lower clay (and
therefore silica) content. As a result, processing of Wingellina
mineralisation consumes significantly lower volumes of acid and, due
to its low viscosity, it can be processed more rapidly.

High pressure acid leach (HPAL) processing is the method used by
Western Australian laterite projects. Acclaim's HPAL testwork
indicates that acid consumption rates for Wingellina are in the range
of 290 to 360 kg/t. Murrin Murrin and Bulong have acid consumption
rates in excess of 400 kg/t and Cawse is at 350 to 400 kg/t, so it's
clear that processing at Wingellina has the potential to be
significantly more cost efficient.

Structurally, Wingellina also has advantages its neighbours do not
share in that, although it has an average grade of 1 percent, there
are several areas with much higher grades. Furthermore, drilling
during the last quarter confirmed that mineralisation extends much
deeper than originally thought to depths of 200 metres. However,
higher grade zones will be a focus of the next phase of drilling,
commencing during September.

Greater thickness will allow lower mining costs than expansive,
shallow deposits. Our geological modelling indicates that Wingellina
has the potential to increase by a further 100 million tonnes,
placing it then among the worlds top ten nickel oxide laterite
deposits.

CORPORATEFILE.COM.AU

The mineral resource includes 86 million tonnes at 1.22 percent
nickel and 0.08 percent cobalt, using a cutoff of 1.0 percent nickel.
What potential is there for a mineable higher grade zone?

CHAIRMAN ED ESHUYS

The Wingellina mineral resource contains 21 million tonnes at 1.52
percent nickel using 1.3 percent nickel lower cut off grade, which
compares favourably with the size and grade of other nickel oxide
laterite developments such as Inco's New Caledonian Goro deposits.
Goro has reported reserves of 54 million tonnes grading 1.5 percent
nickel.

Drilling has intersected up to 26 metres at 3.1 percent nickel at a
shallow depth of 20 metres and the next round of drilling will focus
on extending the higher grade zones along strike and at depth.

Higher grade zones were identified by Inco's shallow drilling
programs during the 1950s and 60s with many holes ending in greater
than 1.5 percent nickel and included intersections of 82 metres at
2.12 percent and 64 metres at 2.03 percent nickel from the surface.

The pre-feasibility study will analyse the potential for selective
mining of the high grade zones.

CORPORATEFILE.COM.AU

The current resource contains 2.3 million tonnes of nickel metal.
You're still to define a reserve but what size operation do you
currently envisage at Wingellina?

CHAIRMAN ED ESHUYS

The pre-feasibility study will investigate operations at the scale of
50,000 to 100,000 tonnes of nickel metal per annum. This level of
output would require a mining and processing operation of 5 to 10
million tonnes per annum with a focus on higher grades in the early
years.

The current resource estimate of 226 million tonnes at 1 percent
nickel already provides a potential mine life of 20 to 40 years,
depending on processing throughput rates.

CORPORATEFILE.COM.AU

The independent analyst World Nickel Market Study has nearly
completed a study placing Wingellina in a global context. Why did you
commission the study and can you comment on the results of the review
so far?

CHAIRMAN ED ESHUYS

As one of the world's largest undeveloped nickel oxide resources,
with the potential to impact global supply of nickel, Wingellina
needs to be studied in a global context. The World Nickel Market
Study was commissioned tohelp us better understand the activities of
nickel mining companies, the major operations producing the majority
of world supply, the major consumers of nickel and nickel price
forecasts.

The study will assist us in achieving our strategic objectives.

CORPORATEFILE.COM.AU

One of your priorities at Wingellina has been to explore for nickel
sulphides. What progress have you made?

CHAIRMAN ED ESHUYS

Finely disseminated nickel sulphides have been identified in deeper
drilling. The marked depletion of copper platinum group metals and
gold in the deepest rock further supports the concept that nickel
sulphides formed during formation of the Wingellina layered complex.
The most likely location for massive nickel sulphide mineralisation,
as identified in other deposits elsewhere in the world, is at the
basal contact or in feeder pipes and dykes.

Drilling to target the basal contact has been undertaken at two
locations approximately 5km apart which were identified in airborne
electromagnetic surveys. Further drilling of the 10km long basal
contact is planned after detailed analysis of airborne magnetic
survey data is completed.

Airborne magnetics suggest there are feeder pipes or dykes within the
basement gneiss to the northeast of Wingellina and work is underway
to define drilling targets.

Acclaim has also completed a study of the WMC Babel & Nebo nickel
sulphides discovery, 100km to the west of Wingellina. Analysis of all
public data, including drill holes, has enabled a robust
interpretation of the region and our enhanced understanding will be
applied in exploring for nickel sulphides within the basement gneiss.

CORPORATEFILE.COM.AU

Why is finding a mineable resource of nickel sulphide ore one of your
priorities?

CHAIRMAN ED ESHUYS

Discovery of nickel sulphides is a priority of our exploration
activities because earlier drilling has established that the
Wingellina area is prospective for sulphide mineralisation and there
are clear benefits to shareholders resulting from discovery of nickel
sulphides.

Sulphuric acid, which is a by-product of nickel sulphide processing,
is necessary for processing nickel oxide mineralisation. Therefore, a
nickel sulphide discovery would enhance the value of Wingellina
because of the potential cost savings achieved.

CORPORATEFILE.COM.AU

During the quarter, high pressure acid leach (HPAL) testwork achieved
recoveries ofup to 95 percent nickel with acid consumption of 288
kilograms per tonne. You've been undertaking process testwork from
early in the year. What test results are you aiming for before you
can be confident of commercially processing Wingellina oxides?

CHAIRMAN ED ESHUYS

Nickel extraction testwork performed during the quarter included high
pressure acid leach simulations and produced excellent results.
Testing will continue to analyse the variability of the nickel oxide
mineralisation and will include larger, laboratory-scale samples. The
pre-feasibility study, which will look at capital versus operating
costs of possible processing options, will assist in directing future
testwork.

The processing technology currently being applied to Wingellina
mineralisation has been refined by engineers and metallurgists during
the commissioning and operation of the Western Australian nickel
laterite deposits since 1995.

CORPORATEFILE.COM.AU

You've conducted tests using several process methods. What process
route do you currently favour to process Wingellina oxide ore?

CHAIRMAN ED ESHUYS

It's an early call, but testing indicates that a combination of
processing methods may be most appropriate.

HPAL is most effective for processing limonite mineralisation and
atmospheric slurry leach is most effective for saprolite. This
strategy is currently being tested.

CORPORATEFILE.COM.AU

Platinum group metals exploration intersected 9metres at 1.1 g/t in
fresh rock at a depth of 102 metres. What's the significance of that
result, what priority do you give to exploring for platinum group
metals (PGMs) at Wingellina and how will you progress it?

CHAIRMAN ED ESHUYS

The layered complexes of the Musgrave Block, of which Wingellina is
one of the largest examples, are similar to layered complexes
elsewhere in the world. Those complexes also host PGMs.

To date, exploration for PGMs at Wingellina has been based on our
understanding of the geology. The prospective strike length is at
least 10km long and our geological modelling infers that there are at
least two prospective horizons within the complex. Thus, the
potential for economic tonnage is clear and exploration must now
focus on discovering higher grades of greater than 5 g/t Pt + Pd.

Exploration drilling will progress along-strike from intercepts
achieved to date, particularly where structural complexity may
increase the grade and thickness.

CORPORATEFILE.COM.AU

Acclaim recently announced an equity capital raising program. Where
will the new capital be directed?

CHAIRMAN ED ESHUYS

Capital will be directed toward drilling to further define and extend
the higher grade nickel oxide zones, drilling for nickel sulphides
and platinum group metals and a pre-feasibility study.

CORPORATEFILE.COM.AU

What are the next project milestones for Wingellina?

CHAIRMAN ED ESHUYS

Acclaim's strategy for Wingellina includes six objectives:

To increase the size and grade of the higher grade nickel oxide
resource;

To explore vigorously for nickel sulphides;

To determine optimum processing methods by conducting additional
nickel extraction testwork;

To conduct a pre-feasibility study;

To introduce a partner;

Maximize the value of Wingellina.

CORPORATEFILE.COM.AU