australia's identified mineral resources 2004 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2004
Western Areas NL is carrying out a bankable feasibility study (BFS) on its proposed $70 million
development of the Forrestania nickel project, and proposes to be in production by the end of 2005.
The company was considering a 500 000 tpa mining and processing operation involving five mines
and a concentrator, producing about 12 000 tpa of contained nickel for a mine life of six years. The
BFS is expected to be completed in July 2004
In April 2003, Sally Malay Mining Ltd commenced construction at its Sally Malay nickel project
following the securing of a $52 million loan in mid-March and obtaining all the necessary
environmental approvals. The ore will be treated using conventional technology to produce a bulk
Ni-Cu-Co concentrate, which will be exported through Wyndham to be treated at the Jinchuan Group
Ltd smelter-refinery complex in China. Sally Malay Mining Ltd expects the mine to produce 344 500 t
of bulk concentrate containing 45 600 t of nickel, 21 750 t of copper, and 2250 t of cobalt over a 5.5
year mine life. The first concentrate was shipped to Jinchuan, China in September 2004.
Reassessment of the Radio Hill mine by Fox Resources Ltd has shown that, with minimal new
development, up to 751 000 t of ore at 0.8% Ni, 1.0% Cu and 0.05% Co from the disseminated
sulphide zones could be mined economically using the existing decline, with an additional 107 000 t
of ore at 0.9% Ni and 1.1% Cu mined by open pit from B2 orebody. These resources represent a
mine life of about four years using the Radio Hill plant with its current production capacity of 220
000 tpa. Mining re-started at Radio Hill in June 2004 and the first shipment of nickel and copper
concentrate was exported to China in late August 2004.
MPI Mines Ltd plans to commence open cut mining at the Black Swan deposit by the end of 2004.
The company plans to do this in two phases. Phase one involves mining 450 000 tpa for 2500 t of
nickel-in-concentrate and only requires a minimal upgrade to the existing milling and treatment
facility. Commissioning of this phase utilising existing mill infrastructure is scheduled for the third
quarter 2004. Phase two involves mining 1 Mt of ore per year, resulting in production of over 5000 t
of nickel-in-concentrate. This phase will require increasing the power capacity, the provision of more
water and upgrading the mill capacity.
MPI Mines Ltd’s feasibility study for a proposed 250 000 tpa underground operation at Wedgetail
(Honeymoon Well project) producing 10 000 tpa of nickel-in-concentrate is due for completion by
the end of July 2004 with first production commencing in late 2005. The company indicated that
an additional 20 000 tpa of contained nickel could be produced from the open cut mining and
processing of around 4 Mtpa of disseminated sulphides grading 0.75% Ni. This disseminated sulphide
material has low iron to magnesium ratio but relatively high arsenic content and, therefore is
unsuitable as feedstock for the conventional smelting process. MPI Mines Ltd is considering a lowpressure
sulphide leaching process using the Cawse laterite facility.
Independence Gold NL has increased reserves at its Long project to 688 000 t grading 4% Ni for
27 300 t of contained nickel metal. Resources now total 1.37 Mt at 6% Ni for 82 700 t of nickel metal.
Another 27 000 t of contained nickel occurs in pillars but is not included in the resource estimates.
56
Australian Mines Ltd who acquired the Blair nickel mine from Blair Nickel Mine PL, a wholly-owned
subsidiary of McMahons Holdings, commenced underground development work in December. Ore
production is expected to start during the March quarter 2004 with the concentrates being toll-treated
at WMC Resources Kalgoorlie smelter.
Titan Resources NL commenced pre-strip mining in early 2004 at its Armstrong deposit, which has
reported resources of 465 000 t grading 2.12% Ni. The ore is to be toll-treated at WMC Resources
nickel smelter. Underground operations will commence after the completion of the open pit.
Mincor Resources NL is to develop the Redross mine, 70 km south of Kambalda, WA, during 2004,
at a cost of about $11 million. The mine has a combined indicated and inferred resource of 0.345 Mt
at 5.01% Ni.
Allegiance Mining NL has received environmental approval for development work at its Avebury
nickel deposit, west of Zeehan in Tasmania. In March 2004, construction commenced on the access