Plan to Double Mine Capacity in Tasmania to over 10,000 tonnes of Nickel per annum
• Feasibility Study completed with initial 5,700tpa nickel mine. • Allegiance plans to rapidly double output to over 10,000 tpa nickel • Excellent cost structure due to continuous, shallow and thick orebodies, low cost mining, simple metallurgy and existing infrastructure. • Mine finance and offtake discussions reaching finality. • Exploration continually firming Allegiance vision for new nickel province.
Allegiance Mining ( ASX: AGM ) is excited to announce the completion of its Feasibility Study. The company’s Business Plan incorporating the Feasibility Study and a timetable for expansion shows a net present value of $94 million for the Avebury Project. The company is in advanced and detailed discussions with potential banking and offtake partners regarding project finance and an early start in construction.
Ian Levy CEO of Allegiance commented that this marks the transformation from exploration to development and moves the company towards the next phase of being a producer.
Work has started to clear construction sites, construct access roads, establish grid power reticulation and build office and construction accommodation facilities. Over the coming Summer season in Tasmania, weatherproof buildings will be erected to minimise weather delays during mill construction, ensuring nickel production starts before the end of 2006. All regulatory approvals are in place for Avebury’s construction and nickel production.
Chairman, Tony Howland Rose said “that during the Feasibility Study, three characteristics of the nickel ore became material to strategic planning. Firstly, the very wide true-width ore intersections, the high recoveries of nickel into 20% concentrate and exploration drilling indicates significant additional tonnages of good grade nickel ore to be present. We are all very excited and look forward to producing nickel in 2006
A full copy of the announcement is available at www.allegiance-mining.com.au
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