Drilling Update
April 28 2006 - 8:46AM
UK Regulatory
RNS Number:1930C
Braemore Resources PLC
28 April 2006
28 April 2006
BRAEMORE RESOURCES PLC
("Braemore" or the "Company")
Drilling Programme Completed at Leinster
Braemore Resources plc (AIM: BRR), announces the completion of the Company's
drilling programme at the nickel tailings storage facilities at BHP Billiton's
Leinster Nickel operations in Western Australia. Braemore, through its wholly
owned subsidiary Western Consolidated Nickel Pty Ltd, has sole rights to conduct
pilot plant test work and a Definitive Feasibility Study on the reclamation and
processing of sulphide nickel tailings at the Leinster Nickel operations.
In total, 62 holes were drilled at the TSF 1, 2 and 3 nickel tailings storage
facilities, using a Mantis hollow auger drill rig to depths ranging from 10m to
24m.
The drilling programme completes the collection of material required by
Outokumpu Finland, who is conducting flotation test work for the Company.
Selected drill samples will be assayed for their nickel content with the
majority of the material collected being sent to Outokumpu Finland for
completion of the flotation test work.
The independent siting of drill locations was undertaken by SRK Consultants
based on results from previous air core drilling, providing a representative
sample for both evaluation test work and resource calculations.
CSA Australia is currently completing a JORC compliant resource statement on all
three nickel tailings storage facilities, the results of which are expected to
be released to the market shortly. The resource will be independently audited by
AMC Consultants.
Braemore's Managing Director, Mr Clayton Dodd, said "the Company is pleased to
have now completed the drilling and sample collection programme, particulary at
the large TSF 3 tailings facility. We extend our gratitude to BHP Billiton's
on-site management for their great assistance in completing the programme, given
the difficulties experienced by unseasonal heavy rains over the past 6 months".
The information contained in this announcement has been reviewed by the
Technical Director of the Company, Mr Michael Elias BSc (Hons), FAusIMM, CPGeo,
who has over 23 years experience as a nickel geologist, and is a director of CSA
Australia.
-ends-
For further information please contact:
Braemore Resources plc
Clayton Dodd, Managing Director +61 (8) 9218 8833
David Lenigas, Director +44 (0) 207 016 5100
Nabarro Wells & Co Limited
Hugh Oram, Director +44 (0) 207 710 7400
Parkgreen Communications
Justin Howarth / Ana Ribeiro +44 (0) 207 493 3713
Notes to Editors:
* The Company may proceed with the development and operations of commercial
plants to process sulphide nickel tailings at the Leinster operation (the
Project) and subsequently at Kambalda and Mt Keith if the definitive
feasibility study satisfies the project criteria for the production of a
high grade intermediate product in the form of a nickel sulphide containing
61% to 65% nickel.
* Independent consultants AMC Consultants Pty Ltd (AMC), based on historic
mill records of the sulphide tailings in each of the Leinster, Kambalda and
Mt Keith operations, concluded a resource of 162.7 million tonnes containing
approximately 500,000 tonnes of nickel. In addition thereto, AMC have
estimated that a further 522,000 tonnes of nickel will report to tailings
from current processing to the completion of mining activities at the
Leinster and Mt Keith operations.
* Under the Tailings Supply Agreement (the Agreement), BHP Billiton have the
right to acquire a 50% interest in the Project under joint venture
arrangements either at the development stage, or within 3 years after the
commissioning of a plant.
* The Agreement also provides an exclusive undertaking whereby BHP Billiton
may purchase all nickel sulphide product that complies with the Project's
product specification.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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