Lanfranchi’s nickel continues at depth

Vancouver — A drill program to test the down-plunge extension of the Lanfranchi nickel deposit, in Australia, is returning strong grades for partners Brilliant Mining (BMC-V) and Sally Malay Mining (SLLYF-O, SMY-A).

The upper portion of the deposit was mined out starting in the 1960s, but the lower portion remained unexplored until recently. Underground drilling from the old mine is now confirming the continuation of mineralization.

Of the 27 holes completed to date, three results stand out. Hole 148 intercepted 11.3% nickel and 0.3% copper over 33 metres, starting at 96 metres depth. Diamond hole 127 returned 5.37% nickel and 0.34% copper over 24.1 metres starting 69 metres down-hole, and hole 137 hit 13.8 metres grading 7.46% nickel and 0.46% copper.

The results extend the known nickel sulphide mineralization 60 metres down-plunge from the lowest production level still open at depth and across widths of over 200 metres. Preliminary modelling indicates a 1- to 2-metre true thickness.

The shape of the extension as indicated by drilling falls in line with experience from past production at Lanfranchi. The orebody produced 1.4 million tonnes grading 2.32% nickel along a 1.4-km plunge, with true thicknesses ranging from 1 to 3 metres and widths between 100 and 200 metres.

Of interest, recent drilling delineated a massive nickel sulphide zone along the western margin of the extension. Hole 148, the highest-grade intercept assayed to date, came from this zone. Further drilling and modelling is necessary to understand its structure.

Lanfranchi is one of five deposits holding indicated resources in the Tramsways Tenements project area. The project consists of 37 mineral leases encompassing some 50 sq. km in the Kambalda nickel province, in Western Australia.

The cornerstone of the Tenements is the operational Lanfranchi mine, where the Helmut South deposit is being exploited. In the three months ended June 30, the mine produced more than 60,800 tonnes of ore grading 2.19% nickel for 1,330 tonnes nickel.

The Winner deposit, holding probable reserves of 144,000 tonnes grading 4.26% nickel, is being prepped for production by the end of the year. Concurrently, the Deacon deposit, with probable reserves of 1.7 million tonnes grading 2.54% nickel, is being developed, aiming for production in early 2008.

Brilliant acquired its 25% interest in the Lanfranchi mining operations in early 2006 with a takeover of private Australian company Donegal Resources, which held a one-quarter stake in the joint venture. Sally Malay holds the remaining 75% interest.