australia's identified mineral resources 2005 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005
plant and associated infrastructure and is based on three laterite nickel deposits with a combined
proved and probable reserves of 236 Mt at 0.67% Ni and 0.03% Co. The company plans annual
production of up to 220 000 t of mixed nickel-cobalt hydroxide intermediate product at Ravensthorpe
containing up to 50 000 t of nickel and 1 400 t of cobalt, to be shipped from Esperance to
Townsville, in Queensland, for refining at the QNI Yabulu refinery. The metal refining section
of the refinery is being expanded to increase production to 76 000 t of nickel and 3 500 t cobalt.
Engineering, procurement activities and site works were on schedule at both sites and production
is planned to start in the second quarter of 2007.
In late 2004 LionOre Mining International Limited made a successful takeover offer for MPI Mines Ltd
that resulted in MPI becoming a fully owned subsidiary of LionOre. The takeover resulted in LionOre
having 80% control over the Black Swan and the Honeymoon nickel sulphide deposits. In May 2004
ore production commenced from the disseminated nickel sulphide in the Black Swan open pit to
supplement mill feed from the Silver Swan underground operations being fed to the Black Swan
concentrator. During 2004 the concentrator processed 183 229 t of ore at 5.5% Ni from the underground
massive nickel sulphides and 113 617 t at 0.82% Ni from the open pit disseminated ore.
Feasibility studies are nearing completion into the viability of upgrading the Black Swan plant from
its present throughput of 600 000 t per annum to 1–2 Mt to optimise the open pit operation.
In the Lake Johnstone Operations, LionOre continued development of the Maggie Hays deposit and
an upgrade of the nearby Emily Ann processing plant to 500 000 t per annum was completed during
late 2004. A feasibility study is currently in progress to evaluate the viability of mining the large
disseminated nickel sulphide along with the smaller high grade massive sulphides at Maggie Hays
and a decision on development alternatives is expected in the third quarter of 2005.
Prior to its takeover by LionOre Mining International Ltd, MPI Mines Ltd reported that a pre-feasibility
study indicated that a proposed 250 000 tpa underground operation at Wedgetail (part of Honeymoon
Well Project) is viable. An indicated and inferred resource of 1.07 Mt at 6.9% Ni was defined.
LionOre Mining International Ltd announced that a feasibility study was commenced by its
subsidiary, MPI Mines Ltd, in 2005 to consider the exploitation of the Honeymoon Well Project
resource. The study is planned to be completed by the first quarter of 2006.
In April 2004 LionOre purchased the Bulong lateritic nickel processing plant near Kalgoorlie and
commenced a feasibility study into converting the plant into a nickel sulphide hydrometallurgical
facility, utilising its proprietary Activox process, to produce 20 000–40 000 t nickel metal per annum.
LionOre owns 80% of the Activox process and plans to complete the study in 2005.
Production from Jubilee Mines NL Cosmos Deep ore body in 2004 amounted to 12 297 t Ni. By early
2005 an exploration decline was completed from the Cosmos Deep mine for 350 m to the Alec Mairs
deposit, about 550 m below surface. Access to the deposit will be developed following results of
an underground drilling program from the decline. An initial resource estimate was announced for
Anomaly 1 of 36 Mt at 0.74% Ni at a cut off grade of 0.45% Ni. This deposit is 350 m south of the
Cosmos Mine and may be amenable to open cut development. A zone of nickel mineralisation was
also being delineated about 500 m below the surface at the Prospero prospect (Anomaly 3), about
4.5 km south of the Cosmos mine. By mid 2005 the company announced an inferred resource of
960 000 t at 5.4% Ni.
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Western Areas NL completed a feasibility study for its Flying Fox T1 deposit and development work
commenced in late 2004 to access the deposit at about 400 m depth. In mid 2005 the company
announced an updated probable ore reserve for its T1 deposit containing about 15 000 t Ni. Ore
production from T1 is expected to commence in the June Quarter of 2006. The mine development
will be extended to the deeper T4 and T5 deposits provided that sufficient reserves can be
established. The company is planning to complete feasibility studies in 2005 for the Diggers South
and New Morning/Daybreak deposits. A feasibility study is also being conducted for a proposal to
build a nickel concentration plant at Cosmic Boy, half way between Flying Fox and Diggers South.