Brilliant hoping to double Australian nickel mine life (March 05, 2007)

Vancouver — Brilliant Mining (BMC-V) says the discovery of a new high-grade nickel zone at the Lanfranchi mine in western Australia has the potential to double the lifespan of the operation to at least four years.

Brilliant president Mike Sieb issued the prediction after the company released a batch of new high-grade drill intercepts that drove the company’s stock price up by 29 or 24% to $1.44 on the TSX Venture Exchange.

“It has the potential to double our resources,” says Sieb, who was referring to a new discovery located within easy reach of the Lanfranchi mine’s underground workings.

The Deacon zone is adjacent to the main orebody of the mine, which is expected to produce 7,500 tonnes of nickel metal this year for delivery to a concentrator at Kambalda, 42 km north.

However, with only two years of proven reserves to work with, Brilliant and partner Sally Malay Mining (SLLYF-O, SMY-A) are anxious to outline new mineralized zones on the property.

It is with that purpose in mind that Brilliant is conducting a resource definition drilling program on the Deacon zone.

Brilliant acquired its 25% stake in the mine last year by swallowing privately owned Australian miner Donegal Resources. Sally Malay holds the other 75%.

Since the partners released results from a previous batch of drill holes in January, Brilliant says it has received results from another 10 holes.

Highlights include 33.3 metres grading 4.69% nickel across a true width of 23 metres in hole HS256.

Brilliant gives the Deacon zone an estimated true thickness of up to 30 metres and says it has been traced for over 250 metres downplunge, where it remains open.

Having completed 23 drill holes since the zone was discovered in October, Sieb says it is possible that Deacon joins up with the main Helmut South orebody, which is estimated to host 729,000 tones of 2.9% nickel, (including 358,000 tonnes of probable reserves, grading 3.4% nickel).

The Deacon zone’s close proximity to the current mining activity at the Helmut South orebody will facilitate the acceleration of its development and incorporation into the mine plan, the company says.