Australian Mines to acquire 100%
interest in Flemington Cobalt-Nickel-
Scandium Project, New South Wales
HIGHLIGHTS
• Exercised option to acquire a 100% interest in the Flemington Project
from Jervois Mining
• One of New South Wales’ most advanced cobalt projects, with permanent
water allocation for a future mining operation secured, preliminary
environmental assessment approved, and an initial maiden Mineral
Resource1 established
• Potential to significantly increase the current Mineral Resource1 via a
targeted drilling campaign, which is slated to commence in the coming
months
• Focused on providing an updated Mineral Resource1 and commencing a
Pre-Feasibility Study for the Flemington Project in early 2019
1 The Mineral Resource Estimate for the Flemington Cobalt-Nickel-Scandium Project is reported under JORC 2012
Guidelines and was reported by Australian Mines Limited on 31 October 2017. The Mineral Resource for
Flemington, as announced on 31 October 2017 is: Measured 2.5Mt @ 0.103% Co & 403ppm Sc, Indicated 0.2Mt
@ 0.076% Co & 408ppm Sc. There has been no Material Change or Re-estimation of the Mineral Resource since
Australian Mines Limited (“Australian Mines” or “the Company”
(Australia ASX: AUZ; USA
OTCQB: AMSLF; Frankfurt Stock Exchange: MJH) is pleased to announce it has exercised
its option to acquire 100% interest in the Flemington Cobalt-Nickel-Scandium Project2
, located
in central New South Wales.
The Flemington Project is considered one of Australia’s more advanced cobalt-nickel-
scandium projects, having:
✓ An existing maiden Mineral Resource
(2.5 million tonnes at 0.103% cobalt and 403ppm scandium in the Measured category;
and 0.2 million tonnes at 0.076% cobalt and 408ppm scandium in the Indicated
category)3
;
✓ Significant potential to materially expand the current Mineral Resource, given that only
1% of the prospective geology at Flemington has been comprehensively tested to
date4
;
✓ Completed Scoping Study, which indicated that the Project has the potential to
generate an after-tax cash flow of A$677 million for first 18 years of production5
(based
on the existing Mineral Resource6
, which currently covers only 1% of the prospective
geology at Flemington)
✓ Permanent water rights secured7 whose annual allocation is more than adequate to
support a future mining and processing operation at Flemington
✓ Preliminary Environmental Assessment (PEA) for a mining operation at Flemington
accepted by the Government of New South Wales, and
✓ Mining Lease presently pending with the New South Wales Department of Planning8
Under the terms of the Option Agreement9
, Australian Mines, through its wholly-owned
subsidiary Flemington Mining Operations Pty Ltd has now paid the option exercise fee of
$600,000 to Jervois Mining Limited (ASX: JRV).
Completion of the Sale Agreement will occur over the next 20 business days at which time
Australian Mines will make the final payment of $3,400,000 to Jervois Mining Limited.
The original Option Agreement also included a 1.5% gross sales royalty on all proceeds from
the sale of products derived from the Flemington assets. In an unrelated transaction this
royalty has since been sold by Jervois Mining Limited to Cobalt 27 Capital Corp, a physical
commodity trading house focused on cobalt10
.
(20min delay)