agm got it all production cash projects Allegiance M i n i n g N...

agm got it all production cash projects Allegiance M i n i n g N L
ABN 38 0 59 67 6 783
ASX Stock Code: AGM
MEDIA RELEASE 27 October 2006
ANOTHER SUCCESSFUL QUARTER AT ALLEGIANCE
Emerging Australian nickel producer, Allegiance Mining NL ( ASX Code AGM ) is pleased to release its
September quarterly. A full copy is available on our website www.allegiance-mining.com.au. The main
highlights for the quarter are:
• The new SAXON discovery is likely to be a new line of lode.
• Jinchuan Nickel Group of China exercised options worth A$7 million in October.
• US$2.2 billion offtake agreement with Jinchuan Nickel Group of China remains a cornerstone
agreement that brings major benefits to the Avebury Nickel Project.
• Construction continues at full pace and all long-lead items are being ordered in a timely manner.
Both ball mills are under contract, the crushers are being ordered and critical-path components are in
the final stages of firm quotes to the EPCM Engineering firm, Metplant of Perth.
• The project will have a mill throughput of 900,000 tonnes of ore per annum producing more than
8,500 tonnes of nickel (“Ni”) in concentrates per annum. The business plan is to extract and sell
70,000 tonnes of Ni in concentrates from the currently known resources.
• All infrastructure components are now in place on site - Tasmanian grid hydro-electrical power,
dewatering pump station and pipelines, roads, and the Zeehan office + accommodation is complete.
• The water storage dam is 80% complete and is on schedule.
• Two shafts for ventilation and services have been completed by Mancala contractors as planned
during the quarter and are now fully equipped with ladders, pipes and electrical cables.
• The mine is ready to commence mining operations to deliver up to 1.0 million tonnes of ore per
annum and the appointment of the mining contractor is in the final stage of negotiations.
• Recruitment firm Mining People International has been employed to assist recruitment of the
operating workforce over the coming months.
• Avebury resources are 10 million tonnes averaging 1.14% Ni containing 114,000 tonnes of Ni.
• Orebody widths are typically 10 metres to 40 metres in good ground conditions.
• Drilling east and west of the known resource is encountering additional mineralisation.
• Higher grade ore zones near to the current mine access have been proven up.
• Cash balance at the end of September stood at $47.2 million.
• Share Purchase Plan raised $4.8 million at an issue price of 31.1 cents per share in October.
• Arrangements for delivery of nickel concentrates from Avebury to China are being finalised.
CEO, Ian Levy commented “we see no show stoppers and the SAXON discovery confirms that this is
the world’s newest, emerging nickel mining province”.
Chairman, Tony Howland Rose added” we are very excited to be one of the first if not the first company
in which Jinchuan, the worlds 4th largest Nickel Producer have made an equity investment in, in
Australia.
ENDS