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Brilliant Mining Corp.

Publié le 29 janvier 2009

Record Nickel Metal Production for December 2008 Quarter Lanfranchi Nickel Mine, Kambalda District o

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Mots clés associés :   Canada | Nickel |
Brilliant Mining Corp. Suite 1440, 625 Howe St.
Vancouver BC, V6C 2T6

Toll Free: 1-888-331-2269

BMC: TSX-V

Record Nickel Metal Production for December 2008 Quarter
Lanfranchi Nickel Mine, Kambalda District of Western Australia

January 29, 2009

Vancouver, B.C. - Brilliant Mining Corp. (BMC: TSXV) (�Brilliant� or the �Company�) today reported record nickel metal production for the December 2008 Quarter from its 25% owned high-grade Lanfranchi Nickel Mine, located in the world class Kambalda Nickel District of Western Australia.

Key Point Summary for the Quarter:

  • 41% increase in ore production relative to previous quarter at the Lanfranchi Mine
  • A record 873,390 lbs of Payable Nickel to the Company
  • Implementation of Cost Savings Initiative

Quarterly Production

During the December 2008 Quarter, record production was reported from the Lanfranchi Mine at 115,064 tonnes at 2.45% Ni for 2,820 tonnes (6.2 million lbs) of contained Ni metal.  This represents an increase of 41% in ore mined for an increase of 18% in contained nickel relative to the previous quarter and an increase of 84% in ore mined for a 74% increase in contained nickel relative to the comparative 2007 quarter.

Table 1 � Lanfranchi Mine December 2008 Quarterly Production and Deliveries (100% Gross) (1.1) (1.2)

Ore

Details

Units

3 months ending
31 Dec 2008

3 months ending
31 Sept 2008

 

3 months ending
31 Dec 2007

Produced

Ore mined

dmt

115,064

81,634

 

62,539

 

Ni grade

%

2.45

2.93

 

2.59

 

Ni metal contained

t

2,820

2,394

 

1,618

 

 

lbs

6,217,040

5,277,870

 

      3,567,000

 

Cu grade

%

0.20

0.24

 

0.21

Delivered

Ore delivered

dmt

112,350

80,750

 

60,330

 

Ni grade

%

2.45

2.95

 

2.59

 

Ni metal contained

t

2,750

2,384

 

1,563

 

 

lbs

6,063,300

5,255,820

 

      3,446,000

 

Cu grade

%

0.20

0.24

 

0.22

Notes:  (1.1) 25% of the reported ore deliveries or production is attributable to Brilliant Mining Corp.
  (1.2) dmt = dry metric tonnes, t = tonnes, lbs = pounds

In conjunction an increase of 12% in contained nickel payable to the Company was reported relative to the previous quarter and an increase of 74% in contained nickel payable to the Company was reported relative to the comparative 2007 quarter.

Table 2 � Payable Ni Metal to Brilliant from Quarterly Ore Deliveries

Ore

Details

Units

3 months ending
31 Dec 2008

3 months ending
30 Sept 2008

 

3 months ending
31 Dec 2007

Delivered

Ni metal contained

t

396

355

 

228

 

 

lbs

873,390

781,481

 

503,320

Notes: (2.1)    Payable Nickel is the quantity of nickel, less the loss on nickel metal recoveries and the nickel metal deducted by the customer as the smelting and refining charge, paid to Brilliant at the spot market price of nickel.

Payable Nickel Unit Costs at Lanfranchi Nickel Mine

Mining unit costs, excluding capitalized costs, for the quarter remain within the forecasted range at USD 3.65/lb (AUD 5.47/lb) and are targeted to decrease relative to increased production and the implementation of cost saving initiatives in subsequent quarters.

Table 3 � Non-GAAP Lanfranchi Nickel Mine Operating Unit Costs �Payable Nickel Basis

 
Area

 
Units

3 months
ended

Dec 31, 2008

3 months
ended

Sept 30, 2008

3 months
ended

June 30, 2008

3 months
ended

Mar 31, 2008

Mining (excl. development)

A$ per lb

3.84

3.55

4.08

3.08

Haulage

A$ per lb

0.19

0.16

0.24

0.19

Administration

A$ per lb

0.22

0.39

0.36

0.41

Royalties

A$ per lb

0.29

0.40

0.53

0.58

Total direct costs

A$ per lb

4.54

4.50

5.21

4.26

Total direct costs

US$ per lb

3.03

3.00

3.47

2.84

Treatment charge

A$ per lb

1.08

0.93

1.10

0.93

Net By-product credits

A$ per lb

(0.15)

(0.21)

(0.24)

(0.18)

Payable cash costs

A$ per lb

5.47

5.22

6.07

5.01

Payable cash costs

US$ per lb

3.65

3.48

4.05

3.34

Notes: (3.1)  The above table summarizes unit costs from operations at the Lanfranchi Mine on a payable nickel basis (total nickel metal produced less the loss on nickel metal recoveries and the nickel metal deducted by the customer as the smelting and refining charge).
  (3.2) �Mining� unit costs for the December Quarter do not include capitalized mine development costs, pre-production costs for deposits being developed for future mining or capital expenditure items. (eg. leases on mobile equipment and the Deacon raise vent capital project).  Capital development unit costs for the December quarter were A$0.98/lb (USD 0.65/lb) and are additive cash costs to the mine for the period above and beyond the stated Operation�s �Payable Cash Cost�.
  (3.3)  Unit costs are quoted in Australian dollars providing a consistent and comparable basis across the periods regardless of FX rate fluctuations.
  (3.4) Unit costs have been converted to US dollars at the current AUD:USD exchange rate of 0.6664 (as at Jan. 29, 2009) in order to provide a representation of the historical base unit costs projected onto current market conditions.
  (3.5) Unit costs are presented as reported by the manager of the Lanfranchi Joint Venture. Complete financial disclosure will be reported in the Company�s Quarterly Financial Statements and accompanying MD&A; and may differ as presented herein. 

   
Figure 1: Lanfranchi Mine Operating Unit Costs vs. Payable Nickel to the Company on a Quarterly Basis

Cost Reduction Initiatives
In response to the current low nickel price environment, the Lanfranchi Joint Venture (�LJV�) (BMC 25%) has taken action to implement significant cost reduction measures at the Lanfranchi Mine to improve margins.  Regrettably, this resulted in a number of redundancies.  In addition, a 10% salary reduction was accepted and some employee benefits (private health cover and additional super contributions above the statutory 9% level) were suspended.  

The LJV will continue to focus on cost reduction and productivity improvement initiatives as follows:

Short Term

  • Deferral of all discretionary capital projects and associated expenditure
  • Minimize exploration expenditure to solely focus on necessary and high value added programs
  • Continue to engage with the workforce on cost saving and productivity initiatives

Medium Term

  • Improve equipment utilization and availability to maximize productivity 
  • Seek price reductions from all existing suppliers and consultants
  • Target meaningful cost reductions across the top 10 cost centers

Long Term

  • Improve marketing terms with our customers
  • Look at every facet of the operation and determine if there is a lower cost option

Some of the recently implemented cost reduction initiatives will have an immediate beneficial impact whereas others may take longer to flow through with the results becoming evident in subsequent quarters.

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.

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 owns the Michikamau Ni-Cu-PGM exploration project in central Labrador Canada.

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:

Mike Sieb
President
604-646-4525
mikes@brilliantmining.com
Derek Iwanaka
Investor Relations
604-646-4524
info@brilliantmining.com

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.

- -
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Brilliant Mining est une société d’exploration minière de nickel basée au Canada.

Brilliant Mining détient divers projets d'exploration au Canada.

Son principal projet en exploration est MISCHIKAMAU au Canada.

Brilliant Mining est cotée au Canada. Sa capitalisation boursière aujourd'hui est 38,1 millions CA$ (30,9 millions US$, 27,7 millions €).

La valeur de son action a atteint son plus haut niveau récent le 16 janvier 2009 à 0,56 CA$, et son plus bas niveau récent le 19 avril 2013 à 0,03 CA$.

Brilliant Mining possède 149 450 000 actions en circulation.

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