Acquisition of Nickel Prospect - ELA 15/1025Broad Investments...

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.