Brilliant cuts wide high-grade nickel at Lanfranchi

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

The Winner orebody, a near-surface shoot of massive sulphide mineralization located updip 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, which intersected 16.8 metres (from 164.8 metres) of 5.82% nickel and 0.4% copper.

The series of 12 vertical holes tested the Winner resource in advance of a production decision. Continuous mineralization has been defined over about 150 metres of length between 150 and 250 metres depth. The drill program has led to a 33% increase in the indicated resource for the orebody, which now stands at 110,500 tonnes grading 5.56% nickel, or about 6,100 tonnes (13.4 million lbs.) of contained nickel.

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 (SLLYF-O, SMY-A) holds 75%.

The Lanfranchi mine is now generating considerable revenue for the company. Its one-quarter share of April 2006 nickel delivery proceeds was A$1.3 million ($1.1 million), with May’s metal production substantially surpassing that at A$1.99 million ($1.67 million) from 13,846 tonnes of ore grading 3.08% nickel. A production record was set in June with 18,634 tonnes of ore averaging 2.33% nickel (434 tonnes or 956,800 contained pounds nickel) delivered to the concentrator.

“Gross proceeds received in May begin to illustrate the potential revenue growth that can be attained as increased production is realized through the ramp-up phase at the Lanfranchi nickel mine — with the resulting benefit magnified in the future as nickel prices continue to set record highs,” says Brilliant Mining president Mike Sieb.

Nickel prices recently hit a 19-year high of well over US$13 per lb. as inventories approach multi-year lows. Short-term demand forecasts are expected to outpace current production levels by about 15,000 tonnes for 2006.

Ore from the mine is shipped directly to BHP Billiton’s (BHP-N) nickel concentrator at Kambalda, 42 km 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 0.5 to 30 metres thick.