Wednesday, August 11, 2004 SALLY Malay Mining has more than doubled the nickel resource at the Lanfranchi mine and associated Tramway tenements near Kambalda.
The inferred resource of 1.16 million tonnes grading 2.61% nickel (containing 30,346 tonnes of nickel metal) in four deposits, has increased to 3.65Mt at 2.02% nickel (73,873t of nickel), including an indicated 2.43Mt at 2.25% nickel (54,706t).
The JORC compliant resource classification was calculated by Golder Associates.
Meantime Sally Malay said the $26 million acquisition from WMC Resources was proceeding on schedule, with indicative financing offers from five banks. AMC Consultants is carrying out the due diligence report for the financiers.
In June Sally Malay announced it and Donegal Resources would acquire the project in a likely 75:25 unincorporated joint venture.
At the time Sally Malay managing director Peter Harold said it was anticipated that around $10-15 million in working capital would be needed to bring the project into production, and that first ore delivery to WMCR's Kambalda concentrator was expected December/January.
Production of over 25,000t of contained nickel was flagged over an initial four-year life.
Shares in Sally Malay were unchanged at 72c in afternoon trade.
SMY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
