BRR Braemore Res

RNS Number:4002R
Braemore Resources PLC
16 February 2007

Braemore Resources plc

News Release

London

16 February 2007

Braemore Advances Nickel Sulphide Tailings Project in Western Australia

Braemore Resources Plc ("Braemore" or "BRR") is pleased to announce that it has
commenced the final stages of testwork for the processing of nickel sulphide
tailings from Leinster Nickel Operations of BHP Billiton in Western Australia.

The final testwork follows and is based on the findings and results of
definitive sampling, analyses, testwork and studies conducted for Braemore by
Outokumpu Technologies in Pori, Finland, and by AMMTEC in Perth, Western
Australia over the last 18 months.

The work to date has included detailed chemical analysis, mineralogical
characterization, diagnostic leach testwork and preliminary flotation of
representative samples of Leinster tailings.  The work has identified the range
of nickel values and principal nickel carriers in sulphide and non-sulphide
mineral species and indicated that evaluation of direct leaching of the nickel
sulphide tailings in demonstration plant testwork is justified.

Braemore expects these results to lead to process flowsheet improvements.  In
particular, they indicate potential to simplify the flowsheet by:

1.   removing the requirement for a large flotation
     circuit and related facilities at the front end of the process,

2.   applying direct atmospheric oxidation and leaching of
     nickel from sulphide tailings without prior concentration, and

3.   possibly also negating the requirement, if any, for
     pressure vessels for oxidation and leaching of nickel from the residues 
     after the atmospheric oxidation and leach.

Further analysis and testwork on the leaching of the nickel sulphide tailings
has commenced at Outokumpu Technology Research Centre in Finland and also with
Atomaer Technologies using its atmospheric oxidative leach at the Atomaer
Research Centre in facilities at Mintek in South Africa.

The findings and results of the leaching programs being undertaken by Outokumpu
and Atomaer will be released after technical review together with the findings
of the studies outlined above subject to the confidentiality provisions under
the Tailings Supply Agreement with BHP BIlliton.

"The opportunity to simplify the process flowsheet presents potential for
significant reductions in capital and operating costs at the front end of the
plant," said Braemore Managing Director, Mr Hamish Bohannan.

Mr Bohannan said that although the Project had encountered several delays
including the establishment of suitable drilling techniques to obtain
representative samples and access to site due to wet conditions, the program of
work for the study is expected to be completed on schedule.

ENDS



For further information contact:

Braemore:

Mr Hamish Bohannan

Managing Director

Braemore Resources Plc

Telephone (Office):         +61 8 9218 8833

Telephone (Mobile):         +61 419 234 770

Nabarro Wells & Co. Limited

Mr Hugh Oram

Director

Telephone (office)           +44 20 7710 7400

Parkgreen Communications

Justine Howarth/Ana Ribeiro

Telephone (Office):         +44 20 7851 7480

Background:

Braemore Resources Plc is public company listed on the Alternative Investment
Market of London Stock Exchange.

Braemore acquired all of the issued capital of Western Consolidated Nickel Pty
Limited ("WCN") from Atomaer in July 2005.

WCN has sole rights to conduct pilot plant test work and a Definitive
Feasibility Study on the reclamation and processing of sulphide nickel tailings
at BHP Billiton's nickel operations at Leinster.

WCN may proceed with the development and operations of commercial plants to
process sulphide nickel tailings for the production of a high grade intermediate
product in the form of a nickel sulphide containing 61% to 65% nickel and other
products at the Leinster Nickel Operations (the Project) and subsequently at
Kambalda and Mt Keith if the Definitive Feasibility Study for the Project
satisfies the project criteria.

Independent consultants, AMC Consultants Pty Ltd ("AMC"), have estimated that
the tailings storage facilities contain approximately 162.7 million tonnes with
approximately 500,000 tonnes of nickel based on historic mill records of the
sulphide tailings at the Leinster, Kambalda and Mt Keith operations.  In
addition, AMC have estimated that a further 522,000 tonnes of nickel will report
to tailings from processing operations to the completion of mining activities at
the Leinster and Mt Keith.

The Technical Report by AMC, published in the readmission document issued by
Braemore in July 2005, proposed an indicative flowsheet which included a
flotation circuit at the front end to reduce mass balance, followed by
atmospheric oxidation and leaching with potential to pressure the final residue,
if required.

Under the Tailings Supply Agreement with WCN, 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 Tailings Supply Agreement also provides exclusive rights to BHP Billiton to
purchase all nickel sulphide product from the Project that complies with product
specifications.



Independence Platinum Limited

Independence Platinum Limited was established by Atomaer for the purposes of
financing and investing in the evaluation, development and operations of
Independence Base Metals Refiners (Pty) Ltd, Independence Platinum Resources
(Pty) Ltd and Independence Precious Metals Refiners (Pty) Ltd in South Africa.



Braemore Resources Plc ("Braemore" or "BRR") acquired control of Independence
Platinum Limited ("Independence Platinum"), an unlisted company registered in
England and Wales in December 2006.

Independence Platinum is implementing plans to evaluate, establish and operate
independent base metals refining facilities for the smelting and refining of
sulphide concentrates containing platinum group metals ("PGM") from emerging
platinum producers in South Africa.

The new smelting and refining facilities are being evaluated in terms of an
initial capacity to process 360,000 tonnes of sulphide concentrates containing
platinum group metals ("PGM") per annum, to extract and produce up to 30,000
tonnes of nickel metal, 15,000 tonnes of copper metal and 1,000,000 ounces of
PGM in a high grade PGM iron alloy for subsequent precious metal refining.

ENDS


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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