Kagara Ltd (ASX: KZL)
ASX Release 10 February 2009
Lounge Lizard High Grade Resource increased by 215% to
1.149 million tonnes at 4.62% nickel
Kagara Ltd is pleased to announce that, using a 1% nickel cut off, an upgraded high grade indicated and inferred resource of 1.149 million tonnes grading 4.62% nickel (53,100 tonnes of contained nickel) has been outlined for the Lounge Lizard nickel deposit at Forrestania in Western Australia. This resource is contained within an overall indicated and inferred resource, at a 0.4% nickel cut off, of 7.549 million tonnes grading 1.37% nickel, containing 103,300 tonnes of nickel and represents a 215% increase in contained nickel metal on the previously announced high grade resource of 0.263 million tonnes grading 6.3% nickel.
LOUNGE LIZARD MINERAL RESOURCES |
Category |
Tonnes |
Ni
% |
Co
% |
Cu
% |
Contained
Nickel |
Indicated |
4,497,000 |
0.78 |
0.01 |
0.02 |
35,000 |
Inferred |
1,904,000 |
0.71 |
0.01 |
0.02 |
13,600 |
Indicated |
625,000 |
4.83 |
0.10 |
0.23 |
30,200 |
Inferred |
524,000 |
4.37 |
0.10 |
0.23 |
22,900 |
Total |
7,549,000 |
1.37 |
0.03 |
0.05 |
103,300 |
Note: Table does not balance due to rounding
This phase of resource drilling is now complete and the deposit remains open in a number of directions, however sufficient tonnage has now been outlined to investigate development alternatives. Lounge Lizard is located immediately adjacent to and contiguous with Western Areas? Flying Fox deposit which processed 61,000 tonnes of ore grading 4.6% nickel at a published cash cost of US$1.36 per pound of nickel in concentrate in the December 2008 quarter.
This is a very exciting and significant development for Kagara and is expected to result in Lounge Lizard developing into one of the highest grade and lowest cost nickel mines in Australia.
For comparative purposes, Western Areas T5 deposit contains a resource of 1.026 million tonnes grading 6.8% nickel.
Kim Robinson
EXECUTIVE CHAIRMAN
The Lounge Lizard resource was estimated by solid-body modelling within cut-off grade perimeters of 1.0% nickel and 0.4% nickel to define the extents of a number of high-grade and low-grade resource volumes respectively. Metal grades and density were estimated by inverse distance squared methodology and reported high-grade and low-grade resource quantities are based on applied block grade cut-offs of 1.0% nickel and 0.4% Ni respectively within the resulting block model.
This report, so far as it pertains to ore and mineralisation, is based on information compiled by and as reported upon by Mr Joe Treacy and Mr Ian Hodkinson, both employees of Kagara Ltd, and who are members of the Australian Institute of Geoscientists or the Australasian Institute of Mining and Metallurgy and have over five years experience which 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 ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr Treacy and Mr Hodkinson consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
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