major nickel resource upgrade at kambalda

CONSMIN DELIVERS MAJOR NICKEL RESOURCE
UPGRADE AT KAMBALDA

Consolidated Minerals Limited (ASX: CSM, AIM: CNM, FSE: CMN) today announced a substantial
upgrade in the nickel resource base for its Reliance Nickel operations near Kambalda with successful
drilling programs resulting in a 36% increase in the total inventory of contained nickel to 74,000 tonnes.
The new combined resource estimate stands at 2.1 million tonnes at 3.6% nickel, with 1.045 million
tonnes in the Measured and Indicated categories. This compares with the previous global resource
estimate for the Beta Hunt and East Alpha nickel projects of 1.3 million tonnes at 4.2% nickel for 54,500
contained nickel tonnes (all of which was in the Indicated and Inferred categories).
The resource upgrade includes an increase in the resource for the East Alpha development project to
565,000 tonnes at 4.65% nickel for 26,300 tonnes and new resource estimates for the Foster and East
Cooee deposits, located respectively 4 and 8km east of the Beta Hunt mine.
The resource estimate for Foster is 743,000 tonnes at 2.63% nickel for 19,550 contained nickel tonnes
(Indicated and Inferred), while the resource estimate for East Cooee is 245,000 tonnes at 2.2% nickel for
5,500 contained nickel tonnes (Indicated & Inferred). The updated Measured, Indicated and Inferred
Resource for Beta Hunt is 508,000 tonnes at 4.46% nickel for 22,650 contained nickel tonnes.
Consolidated’s Managing Director, Michael Kiernan, said the substantial increase in the nickel resource
inventory at Kambalda incorporated the results of drilling programs carried out over the past 3 months
which had both extended and upgraded existing resources and lifted the first of two key satellite deposits
to resource status.
“The systematic approach by our experienced nickel team has confirmed the continuity of mineralisation
and upgraded a significant proportion of the East Alpha resource, while also establishing new resource
estimates for the Foster and East Cooee deposits,” Kiernan said.
“The excellent results achieved to date highlight the significant growth potential of the Reliance Nickel
operations, where our objective is to consolidate an 8-10,000tpa production centre at the Beta Hunt-East
Alpha complex while continuing aggressive exploration to upgrade many other regional satellite deposits
to resource status,” he added. “This process is already well underway and clearly demonstrates the
potential to develop multiple future ore sources to underpin further production increases.”
The resource upgrade follows surface diamond drilling programs which delivered some excellent results.
For example, at East Alpha drilling covering the northern portion of the East Alpha ore body which
returned intersections including 4.3 metres @ 16.31% Ni, 4.75 metres @ 4.88% Ni, 2.75 metres @
4.15% Ni, 1.5 metres @ 10.77% Ni and 4.00 metres @ 6.58% Ni.
Consolidated also reported excellent progress with the 800-metre development/exploration drive from
the nearby Beta Hunt mine to access the upper levels of the East Alpha orebody, with the first stage
currently 15% complete and on target for completion by December 2006.
First nickel production from East Alpha is now expected to occur ahead of schedule during the March
2006 Quarter, with full production of 4-5,000tpa expected in the December 2006 Quarter, effectively
doubling production from the Reliance operations to 9-10,000tpa.
ENDS
Released by: On behalf of:
Jan Hope / Nicholas Read Michael Kiernan, Managing Director
Jan Hope & Partners Consolidated Minerals Limited
Telephone: (+61-8) 9388 1474 Telephone: (+61-8) 9321-3633
www.consminerals.com.au
BACKGROUND INFORMATION
Consolidated Minerals is a diversified, ASX S&P 200 Australian-based resource group (Code: CSM) with a
strong growth focus as a supplier of key raw materials to the world’s steel and stainless steel industries. The
Company is also listed on the Alternative Investment Market (AIM) of the London Stock Exchange (Code: CNM)
and the Frankfurt Stock Exchange (FSE) (Code: CMN).
Consolidated has a sound profit base founded on its successful West Australian manganese operations at the
Woodie Woodie mine in the State’s Pilbara region. Woodie Woodie has a secure position as a reliable supplier of
1 million tonnes per annum of high-grade, low-phosphorous manganese ore to markets in Asia and Europe,
representing a sustainable 10% share of the world market.
The Coobina Chromite Project, also located in the Pilbara region, has increased production to capacity levels of
250,000 tonnes per annum of 42% chromite ore, representing a 2.5% share of the world market.
Consolidated’s nickel operations are located in the world-class Kambalda nickel district of Western Australia and
comprise the 5,000tpa Beta Hunt nickel mine, the nearby East Alpha development project and a portfolio of
advanced exploration and development prospects in one of the world’s premier nickel regions.
Consolidated has announced an accelerated development program at its Kambalda operations designed to bring the
East Alpha project into production during 2006, consolidating a 9-10,000tpa nickel production complex through
combined production from Beta Hunt and East Alpha, while continuing to pursue other exploration and growth
opportunities.
The Company has a strong track record in the successful and cost-effective development and operation of mining
projects. Consolidated is also pursuing a number of growth opportunities including joint ventures and strategic
investments in the carbon steel materials sector. These include a joint venture with Fortescue Metal Group Limited
in iron ore and other strategic investments.
Consolidated has a strong shareholder base with major shareholders comprising the Hong Kong-based commodity
trader Noble Resources Limited with 12.4%, AMP Capital Investors with 5.3%, Invesco Australia Limited with
4.3%, CSM Directors with 3.3%, Jenkins Investment Management with 3.2%, European trading partner DCM
Decometal International with 2.8%, and Portfolio Partners with 2.5%.
East Alpha - Significant Intersections from Current Drill Program
Section Purpose Hole No. Length (m)
True
Width (m) Grade From Ore Surface
Core
Angle
543720 New section RBD005 1.40 1.21 3.27% 797.50m Hangingwall 60
RBD005W1
A
0.90 0.64 5.48% 714.50m Hangingwall
45
0.60 0.52 8.42% 806.50m Hangingwall 60
1.45 1.26 2.41% 858.40m Contact 60
RBD005W2 2.00 1.41 6.41% 725.00m Hangingwall 45
2.20 1.56 6.75% 882.80m Contact 45
RBD005W3 2.30 1.48 3.25% 848.00m Flank 40
1.60 1.03 4.71% 916.40m Contact 40
543780 New section RBD006W2 4.30 2.15 16.31
%
780.20m Hangingwall
30
RBD006W3 0.95 0.67 4.91% 800.00m Hangingwall 45
543600 Infill RBD003W5 4.75 2.38 4.88% 903.65m Contact 30
1.50 0.75 10.77
%
912.60m Footwall
30
RBD003W6 2.75 1.77 4.15% 780.20m Hangingwall 40
2.55 1.64 2.79% 852.20m Flank 40
4.00 2.29 6.58% 876.00m Contact 35
So far as it relates to ore and mineralisation, this report is based on information compiled by Mr Craig Reddell who is a member of the Australian Institute of
Geoscientists and who has had more than five years relevant experience in the field of activity being reported on. This report accurately reflects the
information compiled by Mr Reddell. Mr Reddell has consented on the inclusion of this information in the form and context in which it appears in this report.
The East Cooee and Foster resources are subject to the terms of the Nickel Exploration Licence & Option Deed with St Ives Gold Mining Company Pty Ltd a
wholly owned subsidiary of Gold Fields Ltd.