Independent Nickel (INI-T) has intersected higher than expected nickel grades within its existing resource model at the Lynn Lake nickel mine property in Northern Manitoba.
The company says that 12% (17.3 metres) of the mineralization was outside the defined resource area.
Hole LLN-024, drilled into the ‘N’ ore body, returned a 157.9-metre intersection grading 0.65% nickel, 0.26% copper and 0.02% cobalt, including 69.2 metres grading 1.01% nickel, 0.38% copper and 0.02% cobalt.
Independent is drilling to improve its reserves of 10.7 million tonnes grading 0.65% nickel and 0.36% copper at Lynn Lake.
Two wedged daughter holes have been drilled off of LLN-024 and while both encountered similar sulphide mineralization, assays results have not yet been received.
The company has also been drilling on the Echo target area. Two pairs of holes drilled 165 metres apart were tested with borehole electromagnetic surveys. The surveys showed that the ore body was highly conductive and similar in strength and size to the conductive anomaly associated with the ‘N’ ore body.
Independent has drilled nearly 17,000 metres in 26 holes since March when the current phase of drilling began. Drilling has been going rather slowly because the company started by drilling below the 3,000-metre level from surface and had to wait longer than usual to receive assay results.
In the fourth quarter, Independent changed its focus; now the company will target the shallower areas around Echo and will include potential extensions to both the ‘N’ and ‘O’ ore bodies.
The company released a prefeasibility study for Lynn Lake in late 2007. The pretax internal rate of return for the project was 29% with a pre tax net present value of $131 million using an 8% discount rate.
The study recommended mining at a rate of 3,000 tonnes per day over an 11-year mine life.
Lynn Lake was in production from 1953 to 1976, over which time 22.2 million tons of ore were mined with an average grade of 1.023% nickel and 0.535% copper.
Independent shares were up 7%, or 2, to 29 each on a trading volume of 47,000 shares.
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