allegiance drill results to fend off zfx bid

THE AUSTRALIAN BUISNESS 9 JAN 2008

TAKEOVER target Allegiance Mining is poised to release this week what are expected to be encouraging exploration drill results on ground around its Avebury nickel mine on Tasmania's remote west coast.

Taking advantage of milder summer weather, Allegiance will fly drill teams into remote areas by helicopter. And Allegiance chairman Tony Howland-Rose took the opportunity to take a swipe at Zinifex, which is new to nickel, noting that one of the most attractive drill targets, named Godkin, had been dumped by Zinifex in August.

While Jinchuan is speculated to be a possible counter bidder, it would take a change in strategy since it has been content for now with its 10 per cent stake and a sales agreement for all of Avebury's production. Nevertheless, Jinchuan's $244 million bid this week for a Canadian explorer may be a signal that it is prepared to build its own mining business in Australia.