ENK has sold its five per cent stake in AIM-listed Toledo (LON:TMC) for A$698,000 (£440,000) and has conditionally agreed to sell its 18.7 per cent stake in Berong to World Fund Pte for A$6.55 million (£4.13 million).

The Berong stake was valued at A$3.48 million, with the sale price nearly 90 per cent over its book value.

ENK’s sale of its stake in Berong is conditional on its shareholders, Toledo and Atlas Consolidated Mining, not exercising their pre-emption rights. 

If they do, they have to match the price offered by World Fund Pte Limited. Atlas and Toledo have 60 days to exercise their pre-emption rights.

ENK flagged the disposals some time ago, stating it is currently focused on its flagship nickel project at Acoje. The sales will boost its cash position to almost A$41 million.

The company is working towards a bankable feasibility study (BFS) at Acoje, which it said last week it now expects to deliver at the end of September. Brokers expect production at Acoje will commence in late 2013 or early 2014.

Last year, ENK sold its Caldag project in Turkey for a total of US$40 million in cash. 

Berong Nickel Corporation owns the Berong mining tenement on the island of Palawan, Philippines. It has a JORC resource estimate compiled in June 2007 of 9.92 m. tonnes of laterite ore at a 1.55 per cent nickel grade. 

ENK (LON:ENK) has appointed Guy Redvers Walker to the board as a non-executive director.

Walker was nominated to the board by ENK’s major shareholders Montoya Investments and D&A Income, which hold stakes of 18.24 percent and 11.63 percent respectively in the Philippines-focused nickel miner.

ENK’s new non-exec currently acts as company secretary for Montoya and is an advisor to D&A income. Walker has previously served as fund manager and chief operating officer of Talisman Global Asset Management and group treasurer of William Pears Group.

A month ago, ENK announced that contained nickel at its Acoje project in the Philippines had increased by 36 percent following the latest in-fill drilling programme.

Total contained nickel at Acoje is currently estimated at over 720,000 tonnes, with 442,000 tonnes in the indicated category and 278,000 tonnes inferred.

The resource estimate – which is compliant with the JORC standard - is 40.9 million tonnes grading 1.08 per cent nickel in the indicated category and 29 million tonnes at 0.96 percent nickel inferred.

ENK had also received "encouraging" results from its drill programme on the neighbouring ZCMC project.

A drilling programme was completed on 6 March with 234 holes drilled totalling 2,175 metres. This represents approximately 90 percent of the total drilling to be completed on the ZCMC tenement.

The current infill drill program final hole depths have averaged 9.5 metres and have penetrated the entire limonite and saprolitic part of the laterite profile.

ENK said an updated JORC resource estimate for the ZCMC project should be available in the June quarter.

Philippines-focused nickel miner ENK (LON:ENK, ASX:ENK) has appointed industry veteran Dean Stuart as its new chief operating officer. 

Stuart has more than 25 years' experience in mining with fourteen years working in Indonesia and Malaysia.

He was involved with several projects for Aurora Gold in Indonesia including the Mt Muro Gold and Silver Project in Central Kalimantan and the Toka Tindung Project in North Sulawesi. 

He was also Avocet Mining’s General Manager of the North Lanut Project in Indonesia and the Penjom Gold Project in Malaysia and established its Technical Services Group based in Malaysia. 

As COO, Stuart will be responsible for the successful completion of the Bankable Feasibility Study and subsequent construction of the Zambales nickel laterite project at Acoje and the overall management of all ENK operations. 

He will also be part of the executive management team focused on growing ENK's interests worldwide, ENK said.

Yesterday, ENK published a new resource estimate for its flagship Acoje project with contained nickel rising by 36 per cent to over 720,000 tonnes.

Of that, 442,000 tonnes was in the indicated category and 278,000 tonnes inferred.

The JORC resource estimate at Acoje is now 40.9 million tonnes grading 1.08 per cent nickel in the indicated category and 29 million tonnes at 0.96 per cent Ni inferred.

The Zambales project is adjacent to Acoje.

- adds broker comment

Broker Investec has raised its target price for Philippines-focused nickel group ENK Minerals (LON:ENK) by 10 per cent after the latest resource upgrade at its Acoje project.

After an assessment by independent consultant Snowden, the estimate of contained nickel at Acoje increased by 36 per cent to over 720,000 tonnes.

Of that, 442,000 tonnes was in the indicated category and 278,000 tonnes inferred.

The JORC resource estimate is now 40.9 million tonnes grading 1.08 per cent nickel in the indicated category and 29 million tonnes at 0.96 per cent Ni inferred.

ENK said that nearly all of the inferred material reported in its previous 2008 estimate had been converted to indicated resources.

The in-fill drilling also delineated a further 20 million tonnes (seven million tonnes Indicated and 13 million tonnes Inferred). 

The resource estimate also includes a complete detailed re-domaining of the ore body at Acoje to include the new metallurgical data it has garnered on the project.

ENK added it had also received encouraging results from its drill programme on the neighbouring Zambales (ZCMC) deposit.

A drilling programme was completed on 6 March with 234 holes drilled for a total of 2,175 metres.  

This represents approximately 90% of the total drilling to be completed on the ZCMC tenement.

“Results thus far have been encouraging as the previously announced JORC Inferred resource estimate in December 2007 of 23.5 million tonnes at 1.18% Ni and 0.05% Co was based solely on test pit data with an average depth of approximately five metres and only penetrated the limonite portion of the profile,“ it said.

The current infill drill program final hole depths have averaged 9.5 metres and have penetrated the entire limonite and saprolitic part of the laterite profile.

ENK said an updated JORC resource estimate for the ZCMC project should be available in the June quarter.

Investec said today's update represented a 40% increase in contained nickel with a further upgrade expected when the results of drilling at Zambales property come through in June.

The house broker said its ENK target price is based on a peer group valuation comparing nickel resources in the ground and taking today's news into account the target price rises from 31p to 34p. 

Contained nickel at ENK Minerals’ (LON:ENK) Acoje project in the Philippines has increased by 36 per cent following the latest in-fill drill programme.

Total contained nickel at Acoje is now estimated at over 720,000 tonnes, with 442,000 tonnes in the indicated category and 278,000 tonnes inferred.

The JORC resource estimate is 40.9 million tonnes grading 1.08 per cent nickel in the indicated category and 29 million tonnes at 0.96 per cent Ni inferred.

ENK said that nearly all of the inferred material reported in its previous 2008 estimate had been converted to indicated resources.

The in-fill drilling also delineated a further 20 million tonnes (seven million tonnes Indicated and 13 million tonnes Inferred). 

The resource estimate also includes a complete detailed re-domaining of the ore body at Acoje to include new metallurgical data it has gathered on the project.

ENK added it had also received encouraging results from its drill programme on the neighbouring ZCMC project.

A drilling programme was completed on 6 March with 234 holes drilled for a total of 2,175  metres.  This represents approximately 90% of the total drilling to be completed on the ZCMC tenement.

“Results thus far have been encouraging as the previously announced JORC Inferred resource estimate in December 2007 of 23.5 million tonnes at 1.18% Ni and 0.05% Co was based solely on test pit data with an average depth of approximately five metres and only penetrated the limonite portion of the profile,“ it said.

The current infill drill program final hole depths have averaged 9.5 metres and have penetrated the entire limonite and saprolitic part of the laterite profile.

ENK said an updated JORC resource estimate for the ZCMC project should be available in the June quarter.

The bank bought more than 16 million shares after the nickel group published interim results last week and now holds a stake of 6.19 per cent described as beneficial.

ENK is developing the Acoje nickel mine in the Philippines. Once up and running it is expected to produce 24,500 tonnes of nickel and 930 tonnes of cobalt a year. At the moment the Acoje has a 10 year mine life.

ENK is also in a strong cash position following the sale of the Caldag prospect in Turkey earlier in the year.

Last month, managing director Rob Gregory said "The receipt of the additional US$34 million [from the Caldag sale] means that ENK now has over US$40 million cash on hand”.

“The company is fully funded for its ongoing BFS activities at its Acoje project in the Philippines and will have a significantly strengthened balance sheet ahead of negotiations with project finance providers.  This will enable the company to remain on track to commence production at Acoje in 2013," he added.

Shares in ENK ticked up slightly to 12.25p on today’s news, which values the AIM-listed group at £32 million.

In the group’s interim statement today Rowe said he hopes to announce a new JORC resource for Acoje soon, along with new economics for the project. 

The key BFS is also on track for completion in the second quarter of 2012, he added. The firm plans to start building work on the site soon after the BFS is complete.

Earlier this week the company announced that test work on its Acoje mining inventory had shown superior recoveries and economics from tank leaching as opposed to heap leaching. 

The company added it will now only take the tank leaching option forward into the Bankable Feasibility Study due for completion at the end of the second quarter of 2012.

Managing director Robert Gregory said "Not only does tank leaching offer superior economics, it is an inherently less risky option compared to heap leaching in a high rainfall environment. 

“Tank leaching also lends itself to a staged construction approach offering a reduction in initial capital costs and its associated financing. It is for these reasons that we have elected to utilise tank leaching for the BFS."

Meanwhile it said that infill drilling of the resource at Acoje is also now complete and drilling at the Zambales Chromite tenement is approximately 25% complete

Additionally ENK today said that it has now begun the process of selling non-core assets. And it has already entered into agreements for the sale of some copper-gold tenements that were previously owned by Rusina Mining.

The company added it will now only take the tank leaching option forward into the Bankable Feasibility Study due for completion at the end of the second quarter of 2012.

Managing director Robert Gregory said "Not only does tank leaching offer superior economics, it is an inherently less risky option compared to heap leaching in a high rainfall environment. Tank leaching also lends itself to a staged construction approach offering a reduction in initial capital costs and its associated financing. It is for these reasons that we have elected to utilise tank leaching for the BFS."

Infill drilling of the resource at Acoje is also now complete and drilling at the Zambales Chromite tenement is approximately 25% complete, ENK said  Both resource updates will be incorporated into the BFS.

Using tank leaching, recoveries of nickel and cobalt over a three stage leaching circuit averaged 92% and 97% respectively over a 22 hour leach period. 

Based on the average diluted grades of the Acoje mining inventory, an implied cash cost of US$2.93 per pound of nickel produced, net of by products, was calculated. 

Assuming a nickel price of US$7.00 per pound (US$15,430/ tonne) and 80% payability, a notional refining charge of US$1.40 needs to be added for a total cash cost to nickel metal of US$4.33 per pound.

ENK added it also took a very conservative view of the cost of sulphuric acid, which will represent 62% of the total operating costs. 

ENK’s Acoje and Zambales deposits are based on Luzon Island in the Philippines.  The deposits have a combined JORC resource of 840,000 contained tonnes of nickel.

The ZCMC is located near the group’s flagship Acoje nickel mine development project.

The project currently has a JORC inferred resource of 23.5 million tonnes of nickel laterite ore at a grade of 1.18 per cent nickel and 0.05 per cent cobalt. ENK has a 40 per cent stake in the venture. 

With a 3,000 metre drill programme ENK and its partner Montemina Resources Corporation plans to upgrade the current JORC resource estimate.

It is expected that 255 holes will be drilled in the programme. 

ENK said it anticipates that the drilling program will continue until the end of the first quarter of next year. 

In a separate statement earlier today ENK told investors that it has received the outstanding US$34 million from the sale of the Caldag project.

The Acoje nickel project’s bankable feasibility study is now fully funded, it said.

Caldag had previously been a key focus for ENK, however delays in the permitting process led to the mothballing of the Turkish project.

The group announced the agreement to sell Caldag for US$40 million in mid-September and received a deposit of US$6 million shortly after.  

Now ENK is firmly focused on the Acoje project.  This mine development project is located in the Philippines and it is scheduled for first production in 2013.

Once up and running Acoje is expected to produce 24,500 tonnes of contained nickel and 930 tonnes of contained cobalt a year. At the moment the Acoje has a 10 year mine life however, according to ENK, the current resource drill programme should significantly lengthen the life of mine.

"The receipt of the additional US$34 million means that ENK now has over US$40 million cash on hand,” said managing director Rob Gregory.

“The company is fully funded for its ongoing BFS activities at its Acoje project in the Philippines and will have a significantly strengthened balance sheet ahead of negotiations with project finance providers. 

“This will enable the company to remain on track to commence production at Acoje in 2013."

The Acoje nickel project’s bankable feasibility study is now fully funded, it said.

Caldag had previously been a key focus for ENK, however delays in the permitting process led to the mothballing of the Turkish project.

The group announced the agreement to sell Caldag for US$40 million in mid-September and received a deposit of US$6 million shortly after.  

Now ENK is firmly focused on the Acoje project.  This mine development project is located in the Philippines and it is scheduled for first production in 2013.

Once up and running Acoje is expected to produce 24,500 tonnes of contained nickel and 930 tonnes of contained cobalt a year. At the moment the Acoje has a 10 year mine life however, according to ENK, the current resource drill programme should significantly lengthen the life of mine.

"The receipt of the additional US$34 million means that ENK now has over US$40 million cash on hand,” said managing director Rob Gregory.

“The company is fully funded for its ongoing BFS activities at its Acoje project in the Philippines and will have a significantly strengthened balance sheet ahead of negotiations with project finance providers. 

“This will enable the company to remain on track to commence production at Acoje in 2013."

In Turkey, the former main project Caldag was put on care and maintenance in December 2010 after the company experienced persistent delays in getting a forestry permit. Following a strategic review at that time ENK - formerly known as European Nickel – refocused its efforts on the Acoje project.

Recent on-site progress has strengthened the investment case, as has the agreed sale of the Turkish Caldag property for US$40 million which should close on or before November 15, according to the broker in today's note.

“With no shortage of cash with which to complete its Acoje work, we strongly reiterate our 50 pence target price and our Buy recommendation,” Evolution said. ENK is currently trading at 14.6 pence.

At the end of October, ENK achieved first nickel production at its Acoje pilot heap leach plant.

In delivering this nickel hydroxide product, the company will be able to commence conversations with potential off-take partners which will be able to evaluate the product. This would clearly be an important step in the group’s future quest to secure financing for its project post-DFS, which remains on track for completion in the second quarter of next year.  

“While the pre-feasibility study for Acoje delivered robust results on just a 10 year mine life, the recently completed drilling programme on the Acoje inferred resources should enable the group to increase the confidence category of this resource, thereby allowing it to be included in mine plans,” the broker said.

“This, in conjunction with proposed drilling of the Zambales resource, could increase the mine life of a combined operation to in excess of 20 years,” it added.

Nickel miner ENK (LON:ENK, ASX:ENK) announced today that first nickel production at its Philippines pilot plant has begun.

Approximately 50 kilograms of nickel hydroxide product (NHP) was released from the plant’s filter press yesterday, the firm said. Final assay results are described as “outstanding”, and initial assays of the NHP at bench-top level have contained approximately 49 per cent nickel and four per cent iron.

ENK said that the plant can produce approximately 200 kilograms of NHP per month by using ion exchange for nickel-cobalt separation and purification to process a pregnant leach solution from the heap leach trial pad, followed by precipitation of the nickel as NHP.

The initial NHP will be sent to potential customers for evaluation. NHP has wider market appeal than the MHP (missed hydroxide product) that was previously produced at the company’s Caldag project in Turkey since it has significantly lower metal impurities.

Meanwhile, ENK said that the Acoje bankable feasibility study (BFS) for an atmospheric nickel leaching project remains on track for completion in the second quarter of next year. The firm said that the infill drilling programme at Acoje was completed on October 21 and a new updated resource estimate for this tenement will be announced in due course. The drill rigs are currently in the process of relocating to the Zambales Chromite tenement five kilometres north of Acoje, where they will embark on a 255-hole programme, estimated to be completed early next year.

“It is a magnificent effort by the Acoje team to go from being on care and maintenance last year to building and commissioning the pilot plant ten months later,” said Robert Gregory, ENK’s managing director.

ENK Plc (LON:ENK, ASX:ENK) is set for a US$40 million cash boost as it has agreed to sell the Caldag nickel project, which has been on care and maintenance since last December, to a private Turkish firm.

The cash injection means that ENK will be able to take its Philippines nickel project, Acoje, through to bankable feasibility without seeking additional funding from shareholders. 

Caldag was previously ENK’s – under its old moniker European Nickel - priority projects however its progress stalled due to persistent delays in getting a forestry permit. Since Caldag was put on care and maintenance last year the group has refocused its efforts on the development of the Acoje project.  

A US$6 million deposit will be paid to ENK by 13:00 tomorrow and the remaining US$36 million will be paid upon closing the deal – which may be subject to shareholder approval.

"This transaction brings immediate value to shareholders and removes the costs associated with keeping Caldag on care and maintenance,” said managing director Rob Gregory.

“The sale outcome will provide the funds required, without the need to raise additional equity, to allow ENK to complete the Bankable Feasibility Study on its Acoje nickel laterite project in the Philippines which is targeting first production in 2013."

Importantly ENK confirmed that the US$40 million proceeds will fully fund the bankable feasibility study at Acoje. The study is currently on-track for completion in mid-2012.

Once up and running Acoje is expected to produce 24,500 tonnes of contained nickel and 930 tonnes of contained cobalt a year. At the moment the Acoje has a 10 year mine life however, according to ENK, the current resource drill programme should significantly lengthen the life of mine.

The proceeds, which equates to around £25 million (9.6 pence a share) , represent more than half the group’s current market value of £37 million, or 14.25 pence a share.

ENK also confirmed that Caldag had a net book value of US$50 million.

This compares with US$10.91 million at the start of period, though the company’s direct shipments from its Acoje project in the Philippines should help to mitigate the cash burn.

Two shipments of nickel laterite have so far been made and a third is “imminent”, ENK said.

At the same time the resource drilling campaign at Acoje is making progress. 

So far 22 holes for 219 metres have been drilled out of a total of 124 holes, which will cover 1,736 metres. 

The programme is still on target to be completed by the end of September, at which point the rig moves to Zambales Chromite Mining Corporation (ZCMC) to begin 3,300 metre campaign.  

“The company remains on track to extend the ten year mine life by converting the JORC inferred resources at Acoje and ZCMC to JORC indicated status,” the company said this morning. 

“There is also an opportunity to add presently undrilled ore to the resource including the untested saprolite horizon of the ZCMC tenement.”

As previously announced China Tianchen Engineering Corporation has been appointed as the engineering consultant responsible for the implementation of the bankable feasibility study on Acoje.

“The process of identifying principal consultants is well underway and work has commenced in a number of areas,” ENK added.

“The study should be complete by the middle of 2012. The actual BFS will be conducted in parallel with remaining test work being undertaken at the HLT and the ATC.”

The Acoje heap leaching trial, which has been under irrigation for more than three months now, “continues to run on schedule”, the European Nickel added.