re: jbm a standout nickel performer SUBSTANTIAL INCREASE IN...

re: jbm a standout nickel performer SUBSTANTIAL INCREASE IN PROSPERO RESOURCE
AND EXPLORATION UPDATE
Jubilee Mines NL (ASX: JBM) is pleased to announce that, following the inclusion of extensional
diamond drilling results, an updated mineral resource has been estimated for the Prospero nickel
deposit, 4.5km south of its Cosmos Nickel Operations in Western Australia, resulting in a 46%
increase in resource tonnes and 31% increase in contained nickel metal to 79,200 tonnes.
The upgraded resource estimate represents a significant addition to Jubilee’s high-grade nickel
sulphide resource inventory at Cosmos, further advancing its organic exploration and development
strategy. The Prospero deposit is the centrepiece of a new mine development at Cosmos which
includes the nearby Tapinos deposit.
Jubilee also announced today that exploratory diamond drilling of conceptual geological targets some
300 metres north of the existing Prospero resource boundary has returned encouraging intersections
of disseminated, stringer and massive nickel sulphide mineralisation, confirming the potential to add
significantly to the global resource in the Prospero/Tapinos area (refer Figure 1 attached).
Prospero Resource Update
Recent drilling at the Prospero deposit has focused primarily down plunge to the south of the
previously defined resource boundary. While this drilling has been relatively wide spaced, it has
successfully confirmed an additional 130 metres of plunge extent in this area, significantly expanding
the Prospero Resource.
The total resource now stands at 1.33 million tonnes @ 5.95% nickel for 79,200 tonnes of
contained nickel as detailed in Table (1) below. The previously announced resource estimate was
0.911 million tonnes @ 6.64% nickel for 60,500 tonnes of contained nickel.
Table (1) – Prospero Resource Summary
Category Tonnes Grade (%) Ni Metal (tonnes)
Measured 416,000 6.39 26,600
Indicated 470,000 6.42 30,200
Inferred 445,000 5.03 22,400
TOTAL 1,330,000 5.95 79,200
The new resource estimate equates to a 46% increase in resource tonnes and an increase in
contained nickel metal of approximately 31% or 18,700 tonnes. The overall resource grade has
reduced from 6.64% Ni to 5.95% Ni, which predominantly reflects the inclusion of Inferred resources
from the wide-spaced drilling down-plunge to the south of the main orebody. Importantly, the
contained nickel metal in the measured and indicated resources remain essentially unchanged from
the previously announced resource estimate and, with further in-fill drilling of the inferred component
of the resource, the overall grade of the resource may increase.
The Prospero deposit remains open both down-plunge and down-dip, as well as to the north and
south along strike.
It is envisaged that future extensional and in-fill drilling of the Prospero deposit will be undertaken
from underground once appropriate drill platforms have been established, with Jubilee’s exploration
focus now moving to new opportunities in the Cosmos belt.
Page 2
Exploration Update
In addition to the Prospero resource extension drilling, encouraging results have been received from
several new diamond exploration drill holes which have recently been completed to test conceptual
geological targets along strike to the north of the Prospero deposit.
The new results are (see Table 3 for details):
• BJD237 7.0 metres @ 1.2% Ni (including 1.0 metre @ 3.76% Ni)
• BJD251 2.4 metres @ 7.8% Ni (Including 0.75 metres @ 16.6% Ni)
Significantly, these results were achieved some 300 metres north along strike from the currently
defined northern limit of the Prospero deposit in a similar geological setting. DHEM geophysical
surveys indicate the zone improves down-dip. Drill testing of this EM target area is currently in
progress.
Jubilee’s Executive Chairman, Mr Kerry Harmanis, said the substantial increase in the Prospero
resource and recent exploration encouragement to the north of Prospero was very pleasing and
continued the Company’s excellent track record of exploration success.
“Ongoing drilling programs over the past 12 months have confirmed that Prospero is a substantial
mineral system with plenty of scope for further resource tonnes given that it remains open in almost
all directions,” Mr Harmanis commented. “Drilling over the past three and a half months alone has
added some 18,700 tonnes of contained nickel, with an in-ground value of approximately
A$700 million at today’s nickel prices. This is an outstanding result which, once again, reinforces the
importance of our organic growth strategy as a key value-driver for the Company.”
“Including the nearby Tapinos resource, Jubilee’s unmined high-grade nickel sulphide resource
inventory, excluding remaining reserves at Cosmos Deeps, is now almost 90,000 tonnes, with the
potential to increase further with ongoing exploration,” Mr Harmanis said. “At historical production
rates, the additions to the resource inventory achieved in the past three months could almost
represent potentially a further two years of mine life.”
In conclusion Mr Harmanis commented, “In addition to the Prospero resource increase, the
Company’s strategy to focus on exploration is yet again reinforced by the promising new results as
announced today from the area north of Prospero. We will continue to explore with great confidence
given our ongoing record of success.”
The details contained in this report that pertain to ore and mineralisation and the Prospero mineral resource estimate is
based upon information compiled by Mr Peter Langworthy, a full-time employee of the Jubilee Mines NL group of
companies. Mr Langworthy is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Langworthy consents to the
inclusion in the report of the matters based upon his information in the form and context in which it appears.
Page 3
Table (2) – Prospero Significant Drilling Intercepts
Hole No Northing Easting Dip Az
From
(m) To (m)
Width
(m)
Grade
(Ni%)
Previously unreported results included in July 2006 Resource
BJD221b 6,940,350 261,684 -60 268 995.60 996.50 1.00 1.04
BJD221c 6,940,350 261,684 -60 268 908.40 914.50 6.10 4.90
BJD225a 6,940,435 261,655 -60 268 967.00 968.00 1.00 1.33
BJD225b 6,940,435 261,655 -60 268 913.60 918.40 4.80 1.75
BJD232 6,940,525 261,675 -60 268 839.20 843.70 4.50 2.42
BJD232a 6,940,525 261,675 -60 268 906.01 906.44 0.43 4.84
Previously Reported
BJD080a 6,940,640 261,320 -60 270 612.60 614.70 2.10 6.70
(Includes) 0.95 10.00
BJD080b 6,940,640 261,320 -60 270 614.58 618.23 3.65 5.50
(Includes) 1.23 11.24
BJD082 6,940,510 261,400 -60 270 624.53 625.15 0.60 4.00
651.74 653.45 1.71 6.50
BJD082a 6,940,510 261,400 -60 270 629.84 632.81 2.97 7.85
(Includes) 1.40 12.50
BJD082b 6,940,510 261,400 -60 270 633.40 638.01 4.60 9.20
(Includes) 2.00 12.40
BJD082c 6,940,510 261,400 -60 270 613.47 615.28 1.80 4.01
(Includes) 0.27 13.20
BJD082d 6,940,510 261,400 -60 270 634.85 645.00 10.15 6.47
(Includes) 6.90 8.90
BJD82e 6,940,510 261,400 -60 270 610.82 613.08 2.26 8.52
BJD82f 6,940,510 261,400 -60 270 665.68 679.68 14.00 6.56
BJD82g 6,940,510 261,400 -60 270 666.50 686.00 19.50 1.60
(Includes) 2.30 5.60
BJD082h 6,940,510 261,400 -60 270 639.40 646.50 7.10 5.20
BJD082i 6,940,510 261,400 -60 270 640.30 659.90 19.60 10.30
(Includes) 5.20 18.90
BJD082j 6,940,510 261,400 -60 270 614.00 620.10 6.10 11.40
BJD112 6,940,640 261,380 -60 270 713.72 717.51 3.80 15.10
BJD112a 6,940,640 261,380 -60 270 683.80 684.20 0.80 13.50
(Includes) 0.40 19.70
706.30 717.60 11.30 10.70
BJD112c 6,940,640 261,380 -60 270 674.28 678.28 4.00 10.67
BJD112d 6,940,640 261,380 -60 270 684.15 714.70 30.50 7.60
(Includes) 8.75 12.40
BJD0112e 6,940,640 261,380 -60 270 673.54 677.14 3.60 3.60
696.97 701.67 4.70 4.48
BJD114 6,940,480 261,378 -65 268 625.75 629.54 3.80 3.31
BJD119 6,940,480 261,600 -55 268 811.28 813.00 1.72 9.12
759.43 760.00 0.57 11.00
BJD119a 6,940,480 261,600 -55 268 776.00 777.10 1.10 7.21
798.00 800.40 2.40 2.32
BJD119b 6,940,480 261,600 -55 268 828.58 831.78 3.20 13.40
BJD119c 6,940,480 261,600 -55 268 837.00 852.60 15.60 7.80
(Includes) 4.85 15.20
BJD119d 6,940,480 261,600 -55 268 829.20 845.00 15.70 8.70
(Includes) 6.70 9.90
Page 4
Table (2) – Prospero Significant Drilling Intercepts (continued)
Hole No Northing Easting Dip Az
From
(m) To (m)
Width
(m)
Grade
(Ni%)
Previously Reported (continued)
BJD119e 6,940,480 261,600 -55 268 831.70 841.80 10.10 1.40
(Includes) 3.30 2.42
BJD132 6,940,600 261,560 -56 268 802.00 805.60 3.60 5.34
BJD132a 6,940,600 261,560 -56 268 793.50 795.00 1.50 6.50
BJD132b 6,940,600 261,560 -56 268 788.10 793.30 5.20 7.80
BJD132c 6,940,600 261,560 -56 268 796.50 797.90 1.40 8.90
BJD139 6,940,540 261,290 -75 270 634.31 662.39 28.00 3.97
(Includes) 10.10 8.35
BJD139a 6,940,540 261,290 -75 270 656.70 670.30 13.60 7.70
BJD139b 6,940,540 261,290 -75 270 624.00 627.50 3.50 2.50
BJD139c 6,940,540 261,290 -75 270 620.10 629.00 8.90 6.90
BJD163a 6,940,640 261,245 -75 268 643.30 649.60 6.30 6.40
BJD163b 6,940,640 261,245 -75 268 651.30 667.60 16.60 6.80
BJD163c 6,940,640 261,245 -75 268 645.50 652.40 6.90 3.00
BJD163d 6,940,640 261,245 -75 268 640.20 649.60 9.40 4.00
BJD191 6,940,677 261,396 -60 270 667.10 671.90 4.80 1.80
BJD195 6,940,485 261,580 -67 269 920.70 925.00 4.30 5.20
BJD195a 6,940,485 261,580 -67 269 841.25 847.25 6.00 1.00
BJD195b 6,940,485 261,580 -67 269 912.30 912.70 0.40 10.20
BJD195c 6,940,485 261,580 -67 269 870.76 871.60 3.10 14.70
BJD199 6,940,660 261,275 -75 268 681.40 685.00 3.60 6.90
BJD199a 6,940,485 261,580 -67 269 650.40 653.00 2.60 3.00
BJD221 6,940,350 261,684 -60 268 902.20 909.20 7.00 8.40
BJD225 6,940,435 261,655 -60 268 875.17 878.57 3.40 10.60
Table 3 – New Exploration Results
Hole No Northing Easting Dip Az
From
(m) To (m)
Width
(m)
Grade
(Ni%)
BJD237 6940999 261239 -62 270 567.1 574.1 7.0 1.2
(Includes) 1.0 3.76
BJD251 6941004 261340 -60 268 720.6 723 2.4 7.77
(Includes) 0.75 16.6