Wednesday, January 26, 2005 JUBILEE Mines believes the Prospero prospect near its Cosmos nickel operation in Western Australia has strong potential to develop into a mine, with drilling and downhole geophysics reportedly outlining an extensive high-grade system over a strike length of nearly 1 kilometre.
Mineralisation has been hit around 550m below the surface, and the company currently has three diamond rigs working round the clock. Previously reported hits include 2.97m grading 7.8% nickel and 4.6m at 9.2% nickel, with Prospero located 4.5km south from Cosmos.
Meantime drilling of the Alec Mairs deposit is also underway after an exploration decline was driven over from the Cosmos Deeps mine. A preliminary resource is due at the end of the March quarter.
The mineralisation at Alec Mairs was originally said to be around 350m away from the Cosmos workings, with the cost of the exploration decline put at around $2.2 million. However Jubilee said concurrent drilling of the deposit during the quarter saw a reinterpretation that added 120m to the length of the decline.
On the Cosmos production front, Jubilee reported a "strong and steady operational performance", with 47,631 tonnes mined grading 6.85% nickel.
Cash at bank at the end of the quarter totalled $79.5 million, with a further $47.2 million due from Inco – the buyer of Cosmos' concentrate.
Shares in Jubilee closed down 9c Tuesday at $4.78
JBM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
