Very interesting.This what they may be interested in JV...

Very interesting.

This what they may be interested in JV for:

YOUNG, NSW
Nickel/Cobalt/Scandium/Iron Laterite
Exploration Licences 5527, 5571 and 5152
Resource Statement
0.6% Ni cut-off: 167 million tonnes at 0.72% Ni, 0.07% Co
(140 million indicated, 27 million inferred)
Including 0.8% Ni cut-off: 58 million tonnes at 0.99% Ni, 0.07% Co
(50 million indicated, 8 million inferred)
In addition Low Grade 0.3% Ni cut-off: 113 million tonnes at 0.38% Ni, 0.04% Co
(95 million indicated, 18 million inferred)
Total Resource: 280 million tonnes at 0.58% Ni, 0.06% Co
(235 million indicated, 45 million inferred)
The company has been pursuing for about 2 years, a new process for the recovery of nickel, cobalt
and iron from its vast laterite resources near Young, NSW. The enhanced reaction of hydrochloric
acid in a magnesium chloride brine has been widely recognised for about 20 years. The possible
application to the treatment of nickel/cobalt laterites is of more recent origin. Many other groups
worldwide are seeking an improved treatment of laterites, so far without success. For the
relatively low grade Young resource, a treatment method needs to be found that would place any
operation located there potentially in the lower one third of nickel production cost worldwide. We
are advised by our consultants that the chloride route shows particular promise provided the
hydrochloric acid can be cheaply and effectively re-cycled for re-use. Tests have been carried out
in Canada that indicate that acid re-generation is a strong option, subject to engineering and cost
confirmation. The programme for the next 6 months will include:
1. An update of the Aspen Plus modelling of the metallurgical flowsheet;
2. Confirmatory tests for acid re-generation at a major laboratory here in Australia;
3. Independent expert review of key acid regeneration process and design issues;
4. Preliminary engineering studies to yield Capex and Opex for the operation;
5. On-going process development tests in Canada and Sydney;
6. An in-fill drilling programme of some 4000 metres at Young to provide about 10 tonnes of
metallurgical sample;and
7. Plans for a continuous test of the process at pilot plant stage at a probable cost of $12-15
million dollars.
The company can meet the cost of items 1 through 6 but item 7 will need input from a partner,
perhaps in late 2007.