Contained Nickel Reserves Increase to 146 million pounds and Deacon Drilling Commences; Lanfranchi Nickel Mine, Kambalda District of Western Australia
Vancouver, B.C. - Brilliant Mining Corp. (BMC: TSXV) (�Brilliant� or the �Company�) today reported an 8% increase in Mineral Reserves to 2.7 million tonnes of ore grading 2.42% Ni for 146.1 million lbs of contained nickel. In addition, a delineation drill program has commenced down-plunge of the Deacon orebody with the potential to add significant mineral resources and reserves at the Company�s 25% owned Lanfranchi Nickel Mine, located in the world class Kambalda Nickel District of Western Australia.
Key Point Summary:
- 2.7 million tonnes of ore grading 2.42% Ni for 146.1 million lbs of Ni metal in Reserves
- 8% or 10.9 Million Lbs contained Ni Metal increase in Ore Reserves at June 30, 2008 Year-on-Year, taking into account the July07�June08 (�2007/08�) 12 months of depletion from production
- Significant Ore Reserves growth achieved from both Deacon and Lanfranchi orebodies
- Deacon down-plunge extension drilling commences with the potential to substantially add to mine life in the Mineral Reserves and Resources categories
Lanfranchi Mine � Reserve Update
Updated Ore Reserves for the Lanfranchi Mine are reported in the following table (Table 1).
Table 1: Lanfranchi Mine Mineral Reserves at 30 June 2008
| Ore |
Reserves |
30-Jun-08 |
30-Jun-07 |
Difference YoY |
| Body |
Category |
Tonnes
(,000) |
Ni
(%) |
Ni (t) |
Ni
(Mlbs) |
Tonnes
(,000) |
Ni
(%) |
Ni (t) |
Ni
(Mlbs) |
Ni
(Mlbs) |
% |
| Deacon |
Probable |
2,085 |
2.35 |
48,954 |
107.9 |
1,695 |
2.54 |
43,009 |
94.8 |
|
|
| |
Total |
2,085 |
2.35 |
48,954 |
107.9 |
1,695 |
2.54 |
43,009 |
94.8 |
13.1 |
13.8% |
| Helmut |
Proven |
268 |
2.29 |
6,129 |
13.5 |
410 |
2.17 |
8,909 |
19.6 |
|
|
| South |
Probable |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
| |
Total |
268 |
2.29 |
6,129 |
13.5 |
410 |
2.17 |
8,909 |
19.6 |
-6.1 |
-31.2% |
| Winner |
Probable |
99 |
3.92 |
3,878 |
8.5 |
144 |
4.26 |
6,139 |
13.5 |
|
|
| |
Total |
99 |
3.92 |
3,878 |
8.5 |
144 |
4.26 |
6,139 |
13.5 |
-5.0 |
-36.8% |
| Lanfranchi |
Probable |
126 |
2.86 |
3,594 |
7.9 |
25 |
1.92 |
486 |
1.1 |
|
|
| |
Total |
126 |
2.86 |
3,594 |
7.9 |
25 |
1.92 |
486 |
1.1 |
6.9 |
639.5% |
| Schmitz |
Probable |
87 |
2.66 |
2,318 |
5.1 |
94 |
2.93 |
2,750 |
6.1 |
|
|
| |
Total |
87 |
2.66 |
2,318 |
5.1 |
94 |
2.93 |
2,750 |
6.1 |
-1.0 |
-15.7% |
| Martin |
Probable |
75 |
1.86 |
1,385 |
3.1 |
- |
- |
- |
- |
|
|
| |
Total |
75 |
1.86 |
1,385 |
3.1 |
- |
- |
- |
- |
3.1 |
N/A |
| Total |
Proven |
268 |
2.29 |
6,129 |
13.5 |
410 |
2.17 |
8,909 |
19.6 |
|
|
| |
Probable |
2,471 |
2.43 |
60,129 |
132.6 |
1,958 |
2.68 |
52,396 |
115.5 |
|
|
| |
Total |
2,739 |
2.42 |
66,258 |
146.1 |
2,368 |
2.59 |
61,305 |
135.2 |
10.9 |
8.1% |
| Notes: |
1. |
25% of the listed Reserves are attributable to Brilliant Mining Corp. |
| |
2. |
Reserves estimated at 1.0% Ni cut-off except for Deacon stopes which are estimated at 0.8% Ni cut-off |
| |
3. |
Additional notes detailing the Ore Reserves Estimation Parameters are listed at the bottom of this release |
| |
4. |
Abbreviations: t=tonnes, Mlbs=million pounds, YoY=year on year |
After production of 7,303 tonnes (16.1 Mlbs) of contained Ni metal from the Lanfranchi mine in 2007/08 the Mineral Reserves for the project increased by approximately 12,300 tonnes (27.1 Mlbs) of Ni metal. The reported overall gain compared to the Mineral Reserves as at 30 June 2007 was due to significant Ore Reserve growth achieved from both Deacon and Lanfranchi orebodies.
Under the current mine plan and existing processing contracts, production of the delineated Ore Reserves at the Lanfranchi Mine is estimated to provide the Company with approximately 9,600 tonnes (21.1 Mlbs) of Payable Nickel. Payable Nickel Metal is Brilliant Mining�s attributable nickel metal post recovery loss, smelter fee and ancillary charges.
Continued Resource Delineation
In 2008/09 underground exploration activities will be focused on replenishing and adding to the project�s mineral resource and reserve base by drilling the down plunge extensions at Deacon, Helmut South, Schmitz, and Lanfranchi
It is anticipated that subject to the mineralisation continuing down-plunge that each of the three producing channels (Lanfranchi, Winner/Schmitz and Helmut/Deacon) have the potential to add significant nickel tonnes. Historically, the Lanfranchi, Schmitz and Helmut channels have contained approximately 6,000, 9,000 and 15,000 tonnes (13.2, 19.8 and 33.1 million lbs) of Ni metal respectively for each 100 metres of vertical extension.
Figure 1: Lanfranchi Mine Nickel Channels Showing Underground Workings
Deacon Down Plunge Delineation Drill Program
The Deacon down-plunge extensional drill program has commenced with the first phase of drilling targeting the existing 12,200 tonnes (26.9 million lbs) of Ni metal currently classified as an Inferred Mineral Resource at the base of the Deacon Ni channel. The intent of the drill program is to upgrade the Inferred Resource to an Indicated Resource and hence allow subsequent conversion to Ore Reserves. This drill campaign has the potential to significantly add to the mine life in the Reserve category.
The second phase of drilling will be to target a further 200m down plunge of the Inferred Resource limits with the intent to add new material into the resource base at the mine. A high level of confidence exists for the down plunge continuation of the Deacon mineralisation as evidenced by the strong geophysical conductor identified by parallel EM drilling performed during the last quarter of 2007 (see Company press release dated November 1, 2007).
Figure 2: Deacon Resource 3-D Model in Cross Section
Lanfranchi and Schmitz Down-Plunge Extension
The drilling of the extensions to the Schmitz and Lanfranchi Channels requires the completion of drilling platforms in the hangingwall to each orebody. This work has not yet commenced, is currently being planned and awaits mine development in order to attain a suitable position to mount a drill campaign.
All tonnage quantities in this press release unless otherwise stated are on a 100% gross tonnage basis, for the Lanfranchi Mine of which 25% is attributable to Brilliant; and reported on a June 30 year end to be in alignment with the Operation�s budgetary year.
The project is supervised by John Williamson, P.Geol., of Edmonton, Alberta. Mr. Williamson is CEO and a Director of Brilliant, and is the qualified person as defined by National Instrument 43-101.
**Table 1 Notes:
The Ore Reserves outlined in Table 1 reflect planned development that is a continuation of current mine operations and not a new operation.
The Ore Reserves estimation was completed by or reviewed by Jonathon Bayley and Robert Thorburn who are Members of The Australasian Institute of Mining and Metallurgy (MAusIMM). The aforementioned are full-time employees of Panoramic Resources Limited, the 75% partner in the Lanfranchi Joint Venture. The aforementioned have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The aforementioned consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Ore Reserves have been reconciled to the mineral reserve categories as set out by and adopted by the CIM Council.
The mining method selected for the Deacon Ore Body is a series of longhole open stopes which will mine approximately 65% of the reserve with underhand cut and fill mining of the remainder. All stoping voids will be completely filled with paste as part of the mining process.
All shapes created for the reserve was broken into 2.5m sections along the line of advance. Each section was then analysed for diluted grade and the cutoff applied was 0.8%. The measured and indicated resource was broken into 5 x 55m blocks (north-south) separated by 10m wide pillars. Each block was then divided into 3 x 7m primary stopes separated by 2 x 12m secondary stopes. All stopes have vertical walls, have top and bottom drives, and are 25m tall from the floor of the lower drive to the backs of the upper drive. Each drive was then positioned vertically to capture the highest amount of nickel tonnes. Once positioned, each stope then had the lower drive raised and the upper drive lowered to see if the material removed was economic. Each stope was then further manually optimised to add further ore or remove waste on a 2.5m section basis.
All ore remaining after the above three stages was then sliced into 5m vertical sections corresponding with the drives in Helmut South. All sections were then divided into a series of 5 x 5m drives to mine the remaining ore where the diluted grade was above 0.8%. This included areas where smaller amounts of ore which was mined with paste if the resultant grade was still above 0.8%.
Excepting of the longhole Deacon stopes, all drives are created (5x5 for twin boom jumbos, and 3x4 for single boom jumbos) then analysed on a 2.5m advance basis. Blocks grading less than 1.0% are classed as waste.
Details of the parameters utilized for the underlying Mineral Resource Estimates are listed in the Company�s press release dated July 31, 2008.
The following are additional key assumptions and inputs utilized in the calculation of the Ore Reserves:
- Nickel price used is $A23,000 per tonne.
- AUD:USD exchange rate is assumed to be 0.90
- The reserve numbers have allowed for planned dilution (mining shapes which include design waste assigned at a 0% Ni grade), 4% unplanned dilution and 1% ore loss
- Recovery rates between 88% and 92% are used in the models
- There is not expected to be any metallurgical issues leading to penalties
- The current year-to-date operating costs for the Lanfranchi Nickel Mine is A$225 per tonne mined
About Brilliant Mining Corp.
Brilliant Mining Corp. is focused on the production, development and exploration of nickel opportunities world wide. The Company currently has a 25% interest in the producing Lanfranchi Nickel Mine in Western Australia and has active nickel projects in Canada, including the Michikamau property in central Labrador.
On behalf of the Board of Directors
�Mike Sieb�
Mike Sieb, B.Sc., MBA
President
Brilliant Mining Corp.
For further information about Brilliant Mining Corp., or this news release, please visit our website at www.brilliantmining.com, or contact:
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, including management's assessment of Brilliant�s plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Brilliant's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Brilliant expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.