| Thu 11 Jan 2007, 17:01 | | ARM - African Rainbow Minerals Limited - Nkomati O |
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ARI
ARIM
ARM - African Rainbow Minerals Limited - Nkomati Optimisation Increases Reserves
and Provides A Revised Resource Statement
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or "the Company")
Nkomati Optimisation Increases Reserves and Provides A Revised Resource
Statement
African Rainbow Minerals Limited (ARM) (JSE : ARI) and LionOre Mining
International Ltd (TSX/ASX: LIM; LSE: LOR; BSE: LIONORE), co-owners of the
Nkomati nickel mine in South Africa, are pleased to announce an increase in
Nkomati`s nickel reserves of 50% from 324,627 Ni tonnes to 485,377 Ni tonnes and
a revised resource statement of 942,254 tonnes of nickel, from the previous
statement of 674,735 tonnes of nickel. The by-product reserves also increase
significantly to 193,783 tonnes of copper, an increase of 43% and 4,181,015
ounces of Platinum Group Metals (PGM), an increase of 70%.
This follows completion of pit optimisation studies on a large-scale expansion
which included reducing the cut-off grade applied to portions of the Nkomati
mineral resource. The investigation has confirmed that a significant portion of
the lower grade disseminated mineral resource, previously categorized as waste,
is economically extractable at the present market conditions, adding to the open
pit mineral reserve.
Andre Wilkens, CEO of ARM said: "These results re-affirm the ARM strategy of
investing in long life quality assets. The ability to supplement the MMZ
production with PCMZ proves the potential of this quality ore body. Adding the
chromite to Nkomati`s already significant by-products will continue to make
Nkomati most competitive from a global perspective".
Commenting on this exciting development, President and CEO of LionOre, Colin
Steyn said: "The increase in Nkomati`s reserves, combined with the revised
resource statement makes this mine a significant nickel sulphide deposit. In
line with LionOre`s strategy of integrating brownfield mineral resource
potential into sustainable metal production, Nkomati forms an integral part of
LionOre`s long-term growth production profile. In addition, the by-product
potential of the chromitite within the PCMZ as well as the dramatic increase in
PGM`s in both the PCMZ and MMZ now reporting to reserves, is very exciting and
will enhance the economics of the Nkomati expansion".
Nickel, copper, cobalt, chrome and platinum group metal (PGM) mineralisation at
Nkomati occur in three distinct ore zones. Closest to surface is the
Chromititic Peridotite Mineralised Zone (PCMZ) in the Chromititic Peridotite
(PCR) unit. This overlies the Main Mineralised Zone (MMZ) which occurs above
the Massive Sulphide Body (MSB), the focus of current mining activities.
Previous evaluation studies on a large-scale expansion had resulted in the
overlying PCMZ being categorised mainly as uneconomic due to the modifying
factors. However, following LionOre`s 50% acquisition, the joint venture
partners re-examined the expansion potential and commissioned the pit
optimisation studies.
As part of these studies, samples of the PCMZ unit submitted to Mintek in South
Africa for metallurgical testing have returned results that confirm economic
base metal concentrate grades are obtainable at acceptable recovery rates. In
addition, the test work at Mintek has confirmed that the chromite in the PCR
unit can be upgraded to a saleable product. This coupled with improved base
metal and by-product price forecasts will enable the bulk mining of a larger
portion of the PCMZ and facilitates the application of a lower reserve cut-off
grade to optimize the previously published mineral resources in Table 1.
Lower Quartile Solutions (Pty) Limited (LQS) was appointed to carry out a
revised open pit optimisation of the resource using a 0.24% Ni cut-off for the
MMZ and a 0.16% Ni cut-off for the PCMZ. The comparative mineral resources and
reserves at lower cut-offs are tabulated in Table 2.
The reduction in cut-off from 0.30% to 0.16% Ni for the open pit PCMZ and from
0.35% to 0.24% Ni for the open pit MMZ has unlocked a significant part of the
resource that was previously regarded as uneconomic. The main value added lies
in the PCMZ. The optimized open pit reserve for the expansion had not previously
included the PCMZ, so the 153,342 tonnes of contained nickel that is now
available for extraction (Table 2), is additional to previously quoted contained
nickel units for the deposit. The contained nickel available for extraction in
the MMZ has also increased from 228,215 tonnes to 235,623 tonnes (Table 2).
On the basis of these positive results, LionOre and ARM have commissioned Hatch
Africa (Pty) Limited in Johannesburg to proceed with the bankable feasibility
study for a large-scale open pit and underground operation to exploit the MMZ
and PCMZ. This study will be completed by the end of June 2007.
In this analysis, the additional mineral resources available for potential
underground extraction have not been considered in terms of cut-off optimisation
as studies are still in progress to determine the optimal extraction
methodology. As such the quoted mineral resources for the underground PCMZ and
MMZ remain as disclosed below and in the latest ARM Annual Report.
All estimates of mineral resources and mineral reserves in the tables which
follow have been prepared in accordance with the SAMREC and JORC code and such
estimates would not be materially different if prepared in accordance with the
Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral
Resources and Reserves Definitions applicable under National Instrument 43-101.
NOTE - a copy of the tables referred to above is available on the ARM website at
www.arm.co.za
For more information please contact:
Stompie Shiels or Pieter Rorich
Operations Executive Executive Director: Investor Relations and
ARM Platinum New Business Development
Office: +27 11 779 1232 Office: +27 11 779 1300
Mobile: +27 (0)82 412 1004 Mobile: +27(0)82 570 5064
E-mail: E-mail:
stompie.shiels@arm.co.za pieter.rorich@arm.co.za
Johannesburg
11 January 2007
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 11/01/2007 17:01:01 Produced by the JSE SENS Department.
