Toronto-based
The company’s attributable share of profits from the Tati operation totalled US$1.5 million in the latest quarter ended Sept. 30, up from US$105,000 a year earlier.
Tati Nickel produced 1,594 tonnes of payable nickel from the Selkirk and Phoenix mines in Botswana during the latest quarter, and 5,071 tonnes over the first nine months of this year (compared with 4,695 tonnes a year earlier). A feasibility study to triple current nickel production to about 18,000 tonnes of nickel-in-concentrate was recently completed and a decision to proceed is now being reviewed.
Cash operating costs at Tati averaged US$2.05 per lb. for the quarter and US$1.93 for the first nine months of this year, compared with US$1.78 per lb. for the first nine months of 1998. This year’s higher costs are attributed to increased refining fees, which it turn are a result of higher nickel prices.
LionOre posted net earnings of U$7.5 million for its latest quarter and US$7.8 million for the first nine months of 1999. This compares with net earnings of US$414,075 in the 1998 third quarter and US$2.9 million for the first nine months of 1998.
This year’s results include the US$24.6-million sale of the Bounty gold mine in Australia, which allowed the company to realize a book gain of US$7.1 million. Following the execution of the Bounty agreement, LionOre closed out its forward gold sales contracts, thereby realizing US$5.1 million.
LionOre still has exposure to gold through its 60%-owned Wildara joint venture, where a significant gold discovery was made earlier this year. The Thunderbox gold deposit is in the Yandal structural corridor, which hosts a series of gold deposits, including Bronzewing, Mt. McClure and Jundee-Nimary.
Thunderbox has been tested with more than 83 rotary-air-blast (RAB) holes totalling 8,375 metres drilled on an 80-by-40-metre grid. To confirm these results, nine reverse-circulation holes totalling 1,096 metres were drilled.
Three zones have been outlined to date for a total strike extent of 900 metres. Zone C is of most interest, because of the wide widths of continuous oxide mineralization; it is still open to the north and at depth.
Among the significant intersections from Zone C are:
- 37 metres grading 6.74 grams gold per tonne from a depth of 34 metres;
- 43 metres of 3.92 grams starting at 50 metres;
- 65 metres of 3.32 grams starting at 47 metres;
- 39 metres of 3.5 grams starting at 35 metres; and
- 43 metres of 4.71 grams from a depth of 32 metres.
The intercepts are believed to be close to true widths.
The joint venture has budgeted a $1-million program for ongoing exploration. The program will include both delineation and infill drilling, as well as preliminary environmental and metallurgical work.
LionOre and its Australian partner have farmed into nearby properties held by other parties, thereby providing an additional 12 km of strike along the prospective structural corridor. Drilling to test 10 priority targets is planned for later this year.
LionOre also owns interests in several nickel deposits in Australia, now in the project development phase. It also holds a 19% indirect interest in the Cosmos nickel deposit in Western Australia, where construction of a 150,000-tonne-per-year concentrator is scheduled to begin this fall. Concentrates will be sold to Inco under a life-of-mine offtake agreement.
The Cosmos deposit hosts 420,000 tonnes grading 7.52% nickel. Production is scheduled to start in mid-2000.
LionOre recently announced the appointment of Colin Steyn as president and chief executive officer, and Donald Bailey as vice-chairman.
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