the market might wake up when they read this

ENK holds a 18.7% interest

Toledo ships nickel ore to China


Toledo has announced the MV Vinalines Queen has sailed for China with 53,600 wet metric tonnes ("wmt") of nickel ore thereby completing the first shipment of high grade, 1.8% nickel grade material from the Berong mine.

This shipment provisionally generates approximately $3.5m for Berong Nickel Corporation ("BNC"), in which Toledo has a 56.1% economic interest.

The shipment was sold to Shaanxi Energy Metals & Minerals Resources on a spot basis taking advantage of the current high spot prices for nickel ore.

The price of $65 per wet metric tonne is $10 to $20 per tonne higher than BNC has been offered recently for one to two year supply contracts. Whilst it remains BNC's intention to tie up longer term supply arrangements, it is considered prudent to benefit from current spot prices ahead of the closure of the shipping window.

Also on Tuesday, a ship arrived to load the third and final shipment from the original, lower grade, stockpiled ore after which BNC is targeting, subject to sea conditions, to make a further 2-3 shipments of 1.8% material before this year's shipping window closes in October.

Toledo and its JV Partners in BNC have developed a plan to mine 1.8% nickel consistent with the growing demand by ferro nickel producers, particularly in China, for this ore type. To date, BNC has produced 207,163 wmt of 1.8% nickel grade ore.

In some of the areas being mined for this higher grade material, more saprolite ore has been found at depth than previously recorded in calculating the JORC compliant resource. This has benefited mining costs. It is not possible to know if this experience will be repeated as mining moves to other areas but it is consistent with the results of last year's drilling programme in selected areas within the existing mine site.