www.metallicaminerals.com.au
Metallica Minerals are a multi commodity resource company with major interests in
Nickel-Cobalt
Coal – Energy
Bauxite
Tungsten
Copper-Gold
Since its establishment in 1997 and ASX listing in November 2004, Metallica Minerals (ASX code: ‘MLM’) has maintained a core focus on the sustained development of its flagship NORNICO nickel-cobalt project in northern Queensland, while expanding its business through a complementary series of strategic resource project acquisitions, non-core asset sales, corporate alliances, and cutting-edge technological advances.
Metallica Minerals edges closer to multi-metal mining and processing at NORNICO
Metallica Minerals (ASX:MLM) has completed the first formal JORC resource estimates for the Greenvale and Lucknow nickel-cobalt laterite deposits, which lends credence to the prospect of mining and processing of three metals at NORNICO.
These deposits are within the southern portion of Metallica’s wholly-owned NORNICO nickel-cobalt & scandium project, northwest of Townsville.
Metallica identifies these results as maiden resource estimates, forecasting further upside by end of year.
The Greenvale combined Indicated & Inferred resource stands at 4.5Mt @ 1.12% Ni and 0.08% Co, (1.28% NiEq) using a 0.70% NiEq COG, with the higher Indicated and Inferred resource of 1.4Mt @ 1.39% Ni and 0.11% Co, (1.61% NiEq).
The Greenvale resource was estimated using data from 417 RC holes, predominantly being drilled out on a 40m by 40m grid with some infill drilling to 20m by 20m, which is sufficient to classify the resource as Indicated.
The Lucknow combined Indicated and Inferred resource for the Ni–Co laterite deposit based on the drilling to date is 2.4Mt @ 0.57% Ni, 0.20% Co (0.97% NiEq) and 96 g/t Sc, at a 0.7% NiEq cut-off grade (COG), including a higher grade zone of 0.57Mt @ 0.70% Ni, 0.30% Co (1.30% NiEq) and 107 g/t Sc, using a 1.1% NiEq COG.
The Lucknow resource was completed by using data from 298 RC drill holes comprising 7,036m of drilling.
The resource has been drilled out on either a 20m (N-S) by 20m (E-W) grid or a nominal 40m (N-S) by 40m (E–W) grid which is sufficient to classify the resource as Indicated.
Where the drilling has been completed on a 80m (N–S) by a 40m (EW) grid the resource has been classed as Inferred.
Metallica highlights the possibility that once additional bulk density data becomes available, the majority of the Indicated Resource may then be classed as Measured.
The scandium resource within the Lucknow laterite deposit though is subject to a Joint Venture (JV) agreement with Straits Resources Exploration (ASX: SRL).
Under the terms of the JV, all scandium ore is to be mined or stockpiled separately and kept for later processing.
Laterite resources are classified as either Ni-Co ore or Sc ore under a formula agreed by the JV, and as a result of this, the total Lucknow resource is separated into two exclusive parts.
Metallica is investigating the processing of a minimum of 180,000tpa of high grade Ni–Co & Sc ore through a proposed NORNICO Stage 1 processing plant located on the Greenvale Mine Site. This would maximise margins by recovering the three metals together.
Further metallurgical testwork will also be undertaken on material from Greenvale and Lucknow to investigate the processing of higher than expected iron levels (>25% Fe) before committing to a full feasibility study.
Further drilling of six diamond drill holes is planned at Greenvale and Lucknow for metallurgical, geological and bulk density purposes.An additional 3,000m of RC drilling and 2,000m of shallow Aircore drilling is designed to increase the resource base, convert the Indicated and Inferred resources to Measured and Indicated status and to identify shallow high grade resources (in the top 10m of the laterite profile) which can be processed in the early years of the planned NORNICO Stage 1 Ni-Co-Sc processing plant.
The NORNICO Stage 1 Scoping Study and financial model has been completed, with a summary being currently prepared.
