Brilliant cuts wide high-grade at Lanfranchi nickel

Vancouver – Definition drilling on the Winner orebody at Brilliant Mining’s (BMC-V) Lanfranchi joint venture in Western Australia has delivered significant intercepts of high-grade nickel mineralization.

The Winner orebody, a near surface shoot of massive sulphide mineralization located up-dip from the Schmitz orebody, returned up to 22.4 metres (from 199 metres depth) of 6.24% nickel and 0.88% copper in hole TD8019. Additional holes included TD8012 intersecting 16.8 metres (from 164.8 metres depth) of 5.82% nickel and 0.4% copper.

The series of 12 vertical holes tested the Winner resource prior to a production decision for the orebody. Continuous mineralization has been delineated over about 150 metres of length between the depths of 150 metres and 250 metres. Previous indicated and inferred resource estimates of 89,000 tonnes at 4.6% nickel and 13,000 tonnes averaging 3.6% nickel respectively were tabled earlier this year.

Brilliant acquired its 25% interest in the nickel deposit and producing operations earlier this year by taking over private Australian company Donegal Resources, which held a one-quarter interest in the JV. Project partner Sally Malay Mining (SMY-A) holds the remaining 75% interest.

The Lanfranchi mine is now generating a significant revenue stream for the company. Its one-quarter share of April 2006 nickel delivery proceeds was Aus$1.3 million, with May’s production surpassing that and setting a record.

Ore from the mine is directly shipped to BHP Billiton’s (BNP-N) nickel concentrator at Kambalda, located 42 km to the north, under a long-term ore tolling and concentrate purchase agreement whereby the major’s subsidiary Nickel West buys up to 350,000 tonnes of ore annually for processing. The agreement also includes guaranteed recoveries, mitigating any metallurgical risks that may arise.

The Kambalda-type nickel deposits are komatiitic in origin, where high-grade massive sulphides are concentrated in footwall embayments of ultramafic flows. The mineralized lenses at Lanfranchi range from 50-to-500 metres in length, 30-to-80 metres in width and from 0.5-to-30 metres thick.