Vancouver A drilling program aimed at defining high-grade nickel has identified a zone with potential to support a small-scale mining operation at the Bethlehem nickel laterite property held by MBMI Resources (MBR-V) on Palawan Island, Philippines.
Recent drilling defined a zone measuring about 500 metres by 700 metres, with mineralization averaging between 3-8 metres in thickness. Grades were as high as 3.08% nickel, with 71 holes returning intercepts grading more than 2% nickel.
The best hole drilled to test an adjacent zone intersected 2.63% nickel over 18 metres.
Drilling is continuing around-the-clock with several drills on a 100-metre by 100-metre grid. Once high-grade zones are identified, they are further tested by infill drilling on a 50-metre by 50-metre grid.
MBMI is encouraged by results of the drill program as 128 of 320 drill holes contained mineralized intercepts with grades higher than 1.7% nickel. The company notes that zones with grades of 1.5% or greater could support a ‘direct shipping program’ similar to a small nickel-mining operation on an adjoining property in the district.
Several nickel laterite mines have been developed by various operators on Palawan Island. The largest is Coral Bay, owned 54% by Sumitomo Metal Mining of Japan, which plans to double output to 20,000 tonnes in the next few years in response to growing Asian demand.
A Chinese smelting group has agreed to invest US$4 million to acquire 16% of the Bethlehem and Alpha nickel projects held by MBMI, subject to a formal agreement and various approvals. The Chinese company can increase its interest to 20% by investing another US$1 million.
MBMI will use the funds to explore and develop four Palawan Island properties. The company is finalizing the acquisition of four more projects in Samar province, on a neighboring island.
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