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Thanks MiningNews.net


Striker announces Merlin resource

Andrea Hayward


Thursday, July 08, 2004
WHAT Rio Tinto abandoned, Striker Resources hopes to revive and is optimistic it can make a decision to re-establish mining at the Merlin diamond field in the Northern Territory by the years end, following the announcement of an inferred resource.

Striker commissioned Snowden Mining Industry Consultants to re-evaluate technical information by former owner Rio Tinto and an inferred resource of 9 million tonnes grading 20 carats per hundred tonnes has been confirmed.

Striker managing director Clayton Dodd said 1.8 million tonnes carats was a healthy starting point and was worth about US$200 million at today's prices.

"We are looking to add to the tonnage of the inferred resource and look at the continuation of the kimberlite," he said.

"The big breakthrough has been a complete change in the geological information."

Dodd said previous information had always stated there were 11 separate pipes but the reinterpretation identified these as blows on dyke systems.

A three phase drilling program to begin in August and bulk sampling should allow a clearer picture for Striker.

"Unquestionably, we will be in an extremely good position by the end of the year," Dodd said.

Rio Tinto closed the Merlin operation in 2002 after a production of 500,000 carats worth more than US$100/ct because it was unable to extract the economies of scale it needed compared with longer life, larger scale mines.

Striker picked up the mining lease on the proviso it pays $2 million on commissioning of a mine, with Rio holding claw back rights to 51% should a resource worth more than $1 billion be discovered.

Trial mining at Striker's Western Australia Seppelt diamond project began in April.