Partners find more nickel at Tati

An increase in resources at the Tati nickel operations has prompted owners Anglo American (AAUK-Q) and Lionore Mining International (LIM-T) to budget US$1 million for follow-up exploration.

Tati comprises two deposits, Phoenix and Selkirk, both of which contain typical massive sulphide lenses. At Phoenix, these are characterized by pyrrhotite, pentlandite and pyrite; at Selkirk, by pyrrhotite, pentlandite, magnetite and chalcopyrite.

Selkirk is expected to be mined out by year-end, though the possibility of exploiting a halo of low-grade, disseminated mineralization has not been ruled out. Also, an extensive geophysical anomaly at depth remains untested.

In anticipation of Selkirk’s depletion, the pair sank 17 holes around the Phoenix pit in 1999 and 2000. The program identified new mineralization at the pit’s northern limits and confirmed the continuity of mineralization in the south and at depth.

Accordingly, indicated resources now stand at 167 million tonnes grading 0.29% nickel and 0.17% copper. An additional 3.2 million tonnes, at 0.42% nickel and 0.23% copper, are classified as inferred and are in the southern area of the deposit.

Reserves have also risen slightly, to 48.3 million tonnes grading 0.56% nickel and 0.34% copper. Essentially, the increase follows the optimization of the pit outline in light of the new drill results.

The upcoming program will include 33 core holes totalling 14,200 metres. Drilling will be focused near existing resources, where scout drilling indicates potential for outlining additional tonnage.

Plans also call for regional exploration of nickel-copper soil showings associated with the Phoenix metagabbro. All remain essentially untested.

Meanwhile, development of a wet concentrator at the Phoenix mine is on schedule and budget for commissioning in the first quarter of 2002. The concentrator, which is costing US$66 million to install, will increase annual throughput rates to 3.6 million tonnes, effectively doubling annual production to around 12,500 tonnes of payable nickel.

Anglo holds a 43.35% stake in Tati; Lionore, 41.65%. The remainder is held by Botswana.