I read with great interest and excitement in today's 'The West...

I read with great interest and excitement in today's 'The West Australian Newspaper'( 25th April, 2005) - Business Section, Page 32 about Canadian nickel company LionOre Mining International's go ahead to spend just $20M in upfront costs to access metal worth more than $200M at W.A.'s newest nickel mine, 'Waterloo'. The company will start work on the $20M box-cut and decline next month (fast track) and expects to hit mineralisation about 150m below the surface in the second half of next year. The Waterloo discovery, located south of Leinster, W.A., has an initial indicated resource of 299,000 tonnes grading 3.5% nickel for 10,366t of contained metal, with an inground value of more than $200M based on current commodity prices. LionOre said it was exploring for deep extensions to the deposit, but because of the high-grade nature of the ore, the company would also mine as it goes, generating cash flow from the project. LionOre said only limited infrastructure would be needed at Waterloo because the majority of the services would be sourced from the company's nearby Thunderbox gold mine.I have attached a copy of 'LIM's' announcement on Friday confirming the intention to push the 'go button' on this project, and all relevant details in that announcement.
*** Now, heres the thing! Serious DNL holders know
what they're sitting on, and if you draw a line through LIM's 'Waterloo' figures, you notice how similar and how big the DNL Dikoloti/Botswana discovery is going to prove to be!
The DNL Dikoloti (Prospect) JORC Inferred Resource is already, officially and currently defined as 1.2 million
tonnes at 0.84% nickel (and 0.46% copper) at a nickel cut off of 0.5%. On these early basic figures alone, DNL
can boast a confirmed nickel resource of around 10,080t of contained metal, with an inground value of close to $200M based on current commodity prices. Add to this, 5,520t of copper resource and there's still more! As DNL is still drilling (Phase 2), the recently discovered presence of massive and semi-massive sulphides at Dikoloti North(Phase 1), some 3kms north of the Dikoloti Inferred Resource, indications are that there is potential to significantly increase the JORC Inferred Resource at the Dikoloti prospect. Let's not forget that the size of this major DNL discovery measures 14kms in length! Confirmation of the presence of significant levels of platinum group elements ("PGE's") associated with nickel and copper mineralisation, indicate that the distribution of "PGE's" throughout the Dikoloti - Dikoloti North sulphide system have the potential to add even further, and significant value to the project. And where as LIM's first expected mineralisation strike will occur around 150 metres below the surface, DNL's major strikes thus far have generally been around the 80-90 metre depths. And just as LionOre plans to cut costs and use its close proximity to it's existing mine facilities at Thunderbox, DNL's massive discovery at Dikoloti is only 10kms from the existing smelter complex, and train-lines already run adjacent to the project. Discovery Nickel's access to the skills and experience provided by its ongoing relationship with Falconbridge(Major shareholder in DNL, as well as JORC partner in Dikoloti - DNL earning to 80%) remains a key advantage to the development of this project. The Joint Venture with Falconbridge, an international monolith specialising in nickel mining and production, similar to LionOre, ensures professional fast track of key ventures such as Dikoloti, as well as significant financial backing capabilities and the ability to provide substantial geological and mining information.
LIM shares generally trade around the $7 mark, and DNL is currently around .25c p/s, but I strongly suspect
that gap will close significantly when the market weighs up the 'value', 'size' and 'significance' of DNL's Dikoloti discovery. Good times ahead for all DNL holders!
*****************************************
LIONORE MINING INTERNATIONAL LTD
20 Toronto Street, 12th Floor, Toronto, Ontario M5C 2B8 Canada
Phone: (416) 777-1670 Fax: (416) 777-1320
[email protected] TSX Symbol: LIM, LSE Symbol: LOR, ASX Symbol: LIM
Website: www.lionore.com
NEWS RELEASE
APPROVAL FOR WATERLOO NICKEL PROJECT
Toronto, Ontario – April 21, 2005 – LionOre Mining International Ltd. (TSX/ASX: LIM, LSE: LOR, Botswana:
LIONORE) (“LionOre”) today announced its decision to develop an exploration decline at the Waterloo nickel
sulphide deposit to access high-grade nickel mineralization and explore for potential extensions to the deposit at
depth. The development will enable LionOre to produce a high-grade nickel concentrate for sale or treatment.
The Waterloo nickel deposit, discovered and delineated by LionOre in 2002, is located on a granted mining lease
five kilometres northwest of LionOre’s Thunderbox gold mine and 40 kilometres south of the nickel mining centre
of Leinster, within one kilometre of the sealed Leinster-Leonora Highway.
An initial resource estimate for the Waterloo deposit is detailed in the table below:
2004 Mineral Resource, Waterloo (as at December 31, 2004)
Indicated Mineral
Resource
Inferred Mineral
Resource
Tonnes
(000’s)
Grade
(Ni %)
Grade
(Cu %)
Grade
(PGE
g/t)
Contained
Ni Metal
(t)
Tonnes
(000’s)
Grade
(Ni %)
Grade
(Cu %)
Grade
(PGE
g/t)
Matrix and Massive 125 6.4 0.45 1.93 8,034 57 6.6 0.38 1.56
Disseminated 174 1.3 0.12 0.56 2,332 297 1.4 0.10 0.46
Total 2004 Mineral Resource 299 3.5 0.26 1.13 10,366 354 2.2 0.14 0.63
The Waterloo Mineral Resource has been estimated within defined mineralized domains and reported at a 1.0% Nickel cut-off grade.
The above Mineral Resource was estimated by John McDonald (a full-time employee of the independent consultants McDonald Spiejers) and verified by Roger
Mason (a full-time employee of the LionOre Group). Messrs. McDonald and Mason have sufficient experience which is relevant to the style of mineralization
and type of deposit under consideration and to the activity which they are undertaking to each qualify as a Competent Person as defined in the 2004 Edition of
the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves” and a Qualified Person as defined in the Canadian
National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Messrs. McDonald and Mason consent to the inclusion in the report of the matters
based on their information in the form and context in which it appears.
The Waterloo mineralization remains open down-plunge and structural models for the Waterloo-Amorac region
highlight significant potential for further discoveries in the area. It is expected that this project will yield a
significant and positive cashflow in addition to providing substantial geological and mining information.
Construction of a 30 metre deep box-cut approximately one kilometre to the east of the deposit is expected to
commence in May 2005. Work on the one kilometre decline is expected to commence in August with
mineralization due to be intersected at approximately 150 metres below surface in the second half of 2006.
Only limited infrastructure will be required at Waterloo as the majority of the services will be sourced from nearby
Thunderbox. The pre-production capital cost is estimated to be approximately US$16M (A$20M).
2
Mineralization mined from Waterloo will be trucked either to LionOre’s Emily Ann nickel concentrator located at
Lake Johnston or to the Black Swan concentrator near Kalgoorlie in Western Australia for treatment. High quality
concentrates produced will then either be sold to a traditional smelter or provide feed to support LionOre’s
hydrometallurgical strategy in Western Australia.
All governmental and regulatory approvals necessary to commence development have been received.
About LionOre:
LionOre Mining International Ltd. is an international mining company with a strong record of growth through an
integrated program of acquisitions, exploration success and operational efficiency. The Company also owns the
Activox® process, a proprietary technology for processing metal concentrates. LionOre’s major mining assets
include the Phoenix nickel mine in Botswana and the Emily Ann, Maggie Hays and Black Swan nickel mines and
Thunderbox gold mine in Australia. LionOre also has several highly prospective nickel exploration and
development properties.
LionOre trades on the Toronto Stock Exchange and the Australian Stock Exchange under the symbol “LIM”, on
the London Stock Exchange under the symbol “LOR” and on the Botswana Stock Exchange under “LIONORE”.
For further information, please visit www.lionore.com or contact:
Australia Canada
Mark Ashley
Managing director
LionOre Australia Pty Ltd
+61 8 9481 5656
Mob +61 411 470 104
Ted Mayers
Chief Financial Officer
LionOre Mining International
+1 416 777 1670