nice announcement, page-3

WJR/kr/ASXTIR/ann21/09:03
10 September 2003
The Manager
Company Announcements Office
Australian Stock Exchange Limited
10th Floor
20 Bond Street
SYDNEY NSW 2000
By ASX Online
Pages: 3
Dear Sir
Acquisition of Nickel Properti Properties es –
Widgiemooltha Area
Titan Resources NL is pleased to report that it has entered into an Agreement to acquire
the nickel rights to four groups of tenements covering approximately 21,500 hectares of
prospective ground in the Widgiemooltha area, 40 kilometres south-west of Kambalda in
the Eastern Goldfields of WA. These nickel rights, and in some cases the tenements
themselves, are being purchased from WMC Resources Ltd, via a public tender. Two of the
tenement groups adjoin Titan’s existing Widgiemooltha landholding on the northern and
southern boundaries.
The total consideration is $3.1 million cash.
All of the tenement packages are linked with an Ore Tolling and Concentrate Purchase
Agreement similar to that which applies to Titan’s current Widgiemooltha North area,
whereby Titan will supply massive sulphide ore to the WMC Kambalda concentrator where
it will be toll treated and WMC will buy the resultant concentrate on pre-arranged terms.
There are some residual royalties attached to some of the areas.
Details of the tenement areas and the available information on mineralisation and
prospectivity are given herewith:
Central Widgie: This block, which adjoins the southern boundary of Titan’s existing
tenement holding, consists of six granted Mining Leases covering an area of about
6,000 hectares on the north-eastern flank of the Widgiemooltha dome. The
purchase of this area was for the nickel rights only and does not include the
ownership of other minerals. The Leases cover the southern half of the nowclosed
Mt Edwards nickel mine (the northern half being on Titan’s own ground),
which produced 954,578 tonnes of ore at 2.72% Ni, and they also cover a
number of highly prospective areas of nickel mineralisation, including Widgie
Townsite, Munda, Widgie 3, Mason’s, Rhona and David’s Gossan. WMC Resources
have estimated sulphide nickel resources at the Widgie Townsite deposit to be
1,280,000 tonnes at 2.1% Ni (for 27,250 tonnes of metal), and, at the Munda
area, 45,000 tonnes at 2.54% Ni (for 1,140 tonnes of metal).
- 2 -
In addition there is an ‘identified resource’ (not JORC classified) of 89,000 tonnes
of 1.89% Ni below the base of a small open cut at Widgie 3, which area is
considered an outstanding target for further exploration.
Mandilla: This comprises two Mining Leases covering 2,000 hectares adjoining
the northern boundary of Titan’s areas at Widgiemooltha North and the southeastern
boundary of the old Spargo nickel mine now held by Breakaway Resources
Ltd. There is potential for this area to host the northern extension of Titan’s Zabel
nickel deposit, which has a current resource of 979,000 tonnes at 1.93% Ni.
Mt Eaton: This block is made up of eight Mining Leases and one Exploration
Licence with a total area of approximately 12,500 hectares on the south-western
and southern limits of the Widgiemooltha dome. It is located immediately south
of the producing Wannaway mine. Although there are no established areas of
nickel mineralisation in the form of defined resources, there are a number of
promising drill intercepts that confirm the area as a prime exploration target.
Pioneer: The Pioneer block comprises a single Mining Lease of 1,000 hectares,
situated on the south-eastern flank of the Widgiemooltha dome. As for the Mt
Eaton area, there are no established resources present, but the same comments
as to indications of nickel mineralisation and prospectivity are applicable.
These ground positions have been held by WMC Resources Ltd for between 15 and 35
years and, during that period, have formed a small part of their very large regional holding
covering the whole Kambalda nickel field. Discovered in 1966, Kambalda has, to date,
produced over 36 million tonnes of high-grade nickel ore with an average content of
3.07% nickel, to yield 1,100,000 tonnes of contained nickel metal. It transformed WMC
into a major player in the world nickel industry in a very short time frame. The operation
has involved up to ten deposits being mined at the same time.
The areas acquired represent some of the prime nickel exploration ground in the world,
with the targets being relatively small, high-grade ore deposits, with an ‘in-built’ custom
ore-milling facility and an immediate market nearby. This unique situation facilitates
relatively simple, minimal-cost mine development, ideally suited for small and mid-sized
companies. While basically exploration plays, all the tenement blocks are substantially
more than ‘grass roots’ prospects and there are widespread ‘early’ indications of nickel
mineralisation.
The company is very pleased with these acquisitions and believe they will represent a
major step forward in Titan’s ambitions to grow in the nickel production business and will
prove to be of substantial value to shareholders.
Yours faithfully
William J Ryan
MANAGING DIRECTOR