Australian Mines - Resource expansion drilling commenced at Sconi Project

Australian Mines - Resource expansion drilling commenced at Sconi Project

Australian Mines (ASX: AUZ) has commenced a 50,000-metre RC drill program at its Sconi cobalt-nickel-scandium project in northern Queensland. The close-spaced RC program has been designed to lift the overall tonnage of the project's existing Mineral Resource, and to confirm the high-grade zones of cobalt and nickel mineralisation identified within the overall deposit. This would allow the company to further optimise its proposed production from Sconi.


HIGHLIGHTS

  • 50,000 metre Mineral Resource expansion drilling program commenced at Sconi Cobalt-Nickel-Scandium Project in northern Queensland
  • Targeting additional tonnage and high-grade cobalt & nickel zones along strike of the existing Mineral Resource
  • Regional-scale prospective geology within Australian Mines’ tenements remains available for potential conversion into additional resources

Australian Mines Limited (“Australian Mines” or “the Company”) (Australia ASX: AUZ; USA OTCQB: AMSLF; Frankfurt Stock Exchange: MJH) is pleased to announce it has commenced a 50,000-metre Reverse Circulation (RC) drill program at the Sconi Cobalt-Nickel-Scandium Project in northern Queensland.

The close-spaced RC program has been designed to lift the overall tonnage of the Project’s existing Mineral Resource[1], and to confirm high-grade zones of cobalt and nickel mineralisation identified within the overall deposit, which would allow Australian Mines to further optimise its proposed production from Sconi to capitalise on buoyant commodity price trends.

The detailed planning for this program has been completed in the context of the Bankable Feasibility Study optimisation process and will further explore the potential of the regional-scale areas of prospective geology beyond the existing Resource footprint at the Project.

The exploration modelling completed to date by the Company’s technical team indicates that less than half of the prospective cobalt and nickel-bearing geology at Sconi has been drill tested at a spacing that allows it to be incorporated in current Mineral Resource[2] estimates.

Australian Mines Managing Director Benjamin Bell commented: “This drill program represents a significant investment by Australian Mines in building the tonnage and understanding of the resources at Sconi, and will enable us to maximise the economic return from the Project.

“The existing global Mineral Resource for Sconi is contained within three deposits and the planned drilling is focused on extending the mineralisation at each of these in a manner that is expected to immediately add to the project’s Measured and Indicated Resources in a form that can be readily converted to an Ore Reserve in the future for the mining operation.

“We have also recently added to our large land holding at Sconi through a new tenement covering 272 square kilometres, which is considered prospective for mineralisation in its own right. This sees Australian Mines’ total landholding at Sconi approaching 2,000 square kilometres.”

[1] The Mineral Resource Estimate for the Sconi Cobalt-Nickel-Scandium Project is reported under JORC 2012 Guidelines and was reported by Australian Mines Limited on 31 March 2017. The global Mineral Resource for Sconi, as announced on 31 March 2017 is: Measured 17Mt @ 0.80% Ni, 0.07% Co, Indicated 48Mt @ 0.58% Ni, 0.07% Co, Inferred, 24Mt @ 0.41% Ni, 0.06% Co. There has been no Material Change or Re-estimation of the Mineral Resource since this 31 March 2017 announcement by Australian Mines.
[2] See Australian Mines Limited’s announcement to the ASX dated 31 March 2017 for further details on the Sconi Project. The Mineral Resource Estimate for the Sconi Cobalt-Nickel-Scandium Project is reported under JORC 2012 Guidelines and was reported by Australian Mines Limited on 31 March 2017. The global Mineral Resource for Sconi, as announced on 31 March 2017 is: Measured 17Mt @ 0.80% Ni, 0.07% Co, Indicated 48Mt @ 0.58% Ni, 0.07% Co, Inferred, 24Mt @ 0.41% Ni, 0.06% Co. There has been no Material Change or Re-estimation of the Mineral Resource since this 31 March 2017 announcement by Australian Mines.


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