Focus fast tracks plan to mine Nepean nickel Focus Minerals...

Focus fast tracks plan to mine Nepean nickel

Focus Minerals operations


WA nickel and gold company, Focus Minerals will commence a new drilling program at its wholly-owned Nepean Nickel Project near Coolgardie, Western Australia, after announcing plans to initiate a pre-feasibility study aimed at re-commencing mining operations at Nepean within the next 12 months.

The Nepean Nickel Project is centred on the historic Nepean Nickel Mine, which produced 32,303 tonnes of nickel metal between 1970 and 1987 at a recovered grade of 2.99% nickel from 1.1Mt of ore.

The project hosts an Inferred Resource of 409,000t @ 2.39% Ni, which is contained within underground remnant blocks and the crown pillar.

A recently completed scoping study, which included an assessment of the open pit potential of the crown pillar and the potential to mine underground remnant ore from within the Nepean Mine, has indicated that the project could produce a significant return at prevailing nickel prices, which are ranging between A$50,000 and A$60,000 per tonne.

Focus anticipates completing feasibility work on the project in the September 2007 Quarter, with the aim of commencing mine development early in 2008.

As soon as practicable, Focus will commence a 2,400m reverse circulation and diamond drill program at Nepean in order to recover metallurgical samples of the crown pillar.

The company will re-establish access to the Nepean underground workings so that an assessment of the condition of the workings and a number of the remnant ore blocks can be made.

Focus also plans to initiate exploration follow up of nickel targets at The Mount and to the north of the Nepean Mine where the company holds 100 percent of the nickel rights to 30km of prospective stratigraphy.

“We have reviewed the open pit and underground mining potential at Nepean, taking into account prevailing mining costs and current strong nickel prices,” Focus Minerals’ Managing Director, Peter Williams said.

“Previous pre-feasibility work was conducted when the nickel price was approximately A$17,600 per tonne, but our conclusion now is that we have substantial potential near-term value at Nepean, robust economic conditions and a positive outlook.

“While we aim to be in production within 12 months, we also want to continue to develop further exploration targets,” he said.

“The exploration potential of the area has increased significantly as previously uneconomic nickel intercepts have now become very interesting exploration targets, some with open pit potential.”

Mr Williams said that Focus intends to push hard at Nepean to upgrade the resource, complete metallurgical test work and finalise a feasibility study in the next six to nine months.

“We have always been enthusiastic about the potential of this project. Nepean is an important part of our extensive tenure in the Coolgardie-Widgiemooltha area and represents a significant part of our growth strategy alongside our Redemption Joint Venture interests at Coolgardie,” he said.

- 10 Apr 2007