Acquisition of Nickel Prospect - ELA 15/1025 Broad Investments Limited (BRO) is pleased to advise that its mining exploration subsidiary, Pangaea Metals Limited (“Pangaea”), has entered an agreement to acquire a second tenement within its Cardiff Castle project area, which is immediately to the south of Widgiemooltha in the Eastern Goldfields of Western Australia. The ultramafic rocks that flank the Widgiemooltha Dome are highly prospective for nickel mineralisation and host numerous past and present nickel sulphide mines (see Figure 1). Pangaea previously purchased the granted prospecting licence PL 15/4722, which is situated within Pangaea’s new acquisition and which contains the dormant Cardiff Castle open-pit gold mine (see Figure 2). The new tenement contains both strike extensions to the open-pit gold mineralisation and an ultramafic unit that is prospective for nickel sulphide mineralisation. The ultramafic is present along the full 1470m length of the tenement, within which it comprises two east facing subunits separated by cherty interflow sediments. Two nickelsulphide deposits have been found to the west of the tenement (see Figure 2): the Widge 3 Deposit that was mined by an open-pit and an underground mine was on the base of the ultramafic unit and Consolidated Minerals Limited’s (“CML’s”) Gillet Prospect that is situated above an interflow basaltic unit. CML’s Widgie Townsite nickel sulphide deposit is within the same ultramafic unit, about two kilometres to the northwest. The Gillet mineralisation does not outcrop. It was discovered by the drilling of an EM anomaly. Some of the more significant drill results from its Gillet Prospect, reported by CML in its Quarterly Activities Report for the Period ended 30 June 2007, include 14m @ 3.34% Ni, 14.2m @ 1.46% Ni, 28.75m @ 2.06% Ni, and 11.8m @ 2.95% Ni. The tenement was secured from Mr George Lee for a consideration of $40,000 deposit plus 1.3 million shares in Pangaea, to be issued on or before the Pangaea float. The acquisition is subject to Board approval and as Mr. Lee was one time a Director of Broad, the acquisition may also be subject to shareholder approval, depending upon the date of completion or outcome of a submission to the ASX. Pangaea intends to carry out a similar geophysical programme, upon the grant of the tenement, to that carried out by CML, which resulted in the discovery of its Gillet deposit. The proposed programme is to cover the portion of the ultramafic that is within BROAD INVESTMENTS LIMITED ACN 087 813 090 15 Whiting Street, Artarmon, NSW 2064 Postal: PO Box 162 Artarmon NSW 1570 Ph: 02 9425 0000 Fax: 02 9425 0099 ELA 15/1025. Pangaea is highly encouraged by the drilling results obtained by CML within the adjoining tenement and by the proximity of the application to other nickel deposits. Consolidated Minerals Ltd’s very prospective Widgiemooltha tenement lies in immediate proximity to Pangaea’s ELA 15/1025 tenement. The Chairman of Consolidated Minerals, Mr Jack Carter, said the following at the Company’s AGM on 27 October, 2007: “Nickel remains an important growth driver for Consolidated Minerals, and with the development of our first new mining operation at Widgiemooltha also proceeding well, we remain on track to achieve our medium term objective of increasing production to 15,000 tonnes per annum of contained nickel. We continue to invest strongly in exploration as an important value driver for the Company, and, as outlined in the Annual Report, we will substantially increase exploration expenditure for the year ahead to over $23 million. This will predominantly be directed towards manganese and nickel exploration, including the drill-out of the exciting new Gillet discovery at Widgiemooltha”. The Boards of Pangaea and Broad are extremely pleased with the above acquisition ahead of Pangaea’s imminent spin-off.
BRO Price at posting:
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