Extensional drilling at Sconi Project continues to unlock growth potential for nickel and cobalt resources
HIGHLIGHTS:
• Further positive results returned from Resource extension drilling at Sconi Cobalt-Nickel-Scandium Project
• Cobalt and nickel intersections included: o 15 metres at 0.14% cobalt from 11 metres o 9 metres at 0.30% cobalt from 9 metres o 11 metres at 0.16% cobalt from 8 metres o 10 metres at 1.80% nickel from 29 metres o 20 metres at 1.13% nickel from 36 metres o 14 metres at 1.03% nickel from 21 metres
• Additional 5,000 metres drilling at Greenvale deposit1 completed, following receipt of highly-encouraging assays from recent drilling2 o testing newly-identified mineralised zones, and o further extending the Sconi’s cobalt-nickel mineralisation footprint
• Cobalt-focussed drilling at Lucknow Deposit recently completed o Assays for the remainder due to be received in the current quarter
Australian Mines Limited (“Australian Mines” or “the Company”) (Australia ASX: AUZ; USA OTCQB: AMSLF; Frankfurt Stock Exchange: MJH) is pleased to release further positive results from the Company’s Resource extension drilling program at its Sconi Cobalt-NickelScandium Project.
Australian Mines’ Sconi project, located near the township of Greenvale (approximately 225 kilometres inland from Townsville in Northern Australia), is one of the most advanced projects of its type in Australia and represents far more than just an emerging cobalt + nickel + scandium mining project.
It is planned the Sconi Project will become a fully-integrated chemical processing operation capable of delivering battery-grade cobalt sulphate and nickel sulphate to our off-take partner, Korean-based SK Innovation, for direct application at their global electric vehicle battery manufacturing plants without the need for Australian Mines’ cobalt and nickel products to undergo any further processing3. As such, the Sconi Project is being designed to capture the full “valueadd” of the Project on site4.
Given that a significant portion of the favourable cobalt-nickel-scandium bearing geology at Sconi was not fully tested by drilling, and as result, the current Mineral Resource may not reflect the true mineral endowment of the Project, Australian Mines recently embarked on a 50,000 metre Resource Expansion drilling program at Sconi.
Initial assays from this drill program, were reported to the market on 14 September 20185 with highly positive with thick zones of nickel mineralisation being confirmed beyond the existing Mineral Resource6.
The latest assay results, summarised in this report7, continue Australian Mines’ success in demonstrating that mineralisation at Sconi is much more extensive then reflected in the current Mineral Resource6 used in the impending Bankable Feasibility Study (BFS) for the Project.
Whilst the majority of the assays from this Resource Expansion drilling program at Sconi are still pending, the available results from both the Greenvale deposit and the nearby Lucknow deposit point to continued exploration upside for the Project and a possible improvement in the already impressive Mineral Resource6 at Sconi.
Australian Mines Managing Director, Benjamin Bell, commented: “I am extremely encouraged by the results we are seeing from our extensional drilling across targeted areas within the Sconi Project, as the results to date are pointing towards an increase in the Sconi project’s Mineral Resource for both cobalt and nickel.
“Increasing the project’s Mineral Resource was our clearly articulated goal from the start of this program and we believe we will be in a strong position, come April 2019, to announce a revised Mineral Resource Estimate for Sconi, followed by an optimised Bankable Feasibility Study for the Project shortly thereafter.
“Any potential upgrade to the Mineral Resource Estimate for Sconi as a result of the current drilling program would have the flow-through effect of enhancing the proposed mine plan and life for the Project as well as delivering overall benefits to any future expansion contemplated.
“I look forward to providing additional updates regarding the results of the Resource expansion drilling at Sconi over the coming week and in the lead up to Christmas”