Brilliant drills 5.37 per cent nickel over 24.1 metres
2007-07-31 08:27 MT - News Release
Mr. Mike Sieb reports
JUNE 2007 QUARTERLY UPDATE; 5.37% NI OVER 24.1M AT LANFRANCHI EXTENSION RESOURCE DELINEATION PROGRAM; LANFRANCHI NICKEL MINE, KAMBALDA DISTRICT OF WESTERN AUSTRALIA
Brilliant Mining Corp. has reported the nickel ore production and an update of operations for the quarter ending June 30, 2007, from its 25-per-cent-owned Lanfranchi nickel mine, located in the world-class Kambalda nickel district of Western Australia.
Key point summary:
* 60,864 tonnes of ore mined(i) in last quarter represents a 17-per-cent increase from previous quarter;
* very strong geophysical conductor at base of Deacon inferred resource;
* 5.37 per cent nickel over 24.1 metres drill intercept at Lanfranchi extension;
* continued success at the Tramways dome north drill program.
Production
The Lanfranchi nickel mine produced 60,864 dry metric tonnes(i) of ore averaging 2.19 per cent Ni during the quarter for 1,330 tonnes (2.9 million pounds) of Ni metal contained. Compared with the previous quarter, this represents an increase of 17-per-cent increase in ore production.
LANFRANCHI PROJECT OPERATING STATISTICS -- 100% BASIS(i)
Three months Three months Three months
Units ending ending ending
Details (ii) June 30, 2007 March 31, 2007 Dec. 31, 2006
Mining Ore mined DMT 60,864 52,030 61,173
Ni grade % 2.19 2.21 2.39
Ni metal DMT 1,330 1,149 1,465
Contained Lbs 2,932,148 2,533,111 3,230,000
Cu
grade % 0.20 0.19 0.20
Deliveries Ore delivered DMT 57,558 52,082 61,631
Ni grade % 2.22% 2.21 2.39
Ni T 1,278 1,150 1,473
metal
Contained Lbs 2,817,000 2,535,000 3,247,000
Cu grade % 0.19 0.19 0.20
(i) 25% of the reported ore mined or delivered is attributable to
Brilliant Mining Corp.
(ii) DMT equals dry metric tonnes, T equals tonnes, Lbs equals pounds
The continued strategy at the Lanfranchi mine will be to focus on capital development in the near term to maximize production and revenues in the long term. Currently, two out of three mine crews are committed to the capital development of the Lanfranchi orebody, Winner orebody and Deacon Resource. The incorporation of these new sources of material into the active mine plan will have a dramatic impact on the production profile with nickel metal production projected to double over the next three quarters from current levels.
Winner development
A section of deep weathering was encountered early in the quarter, temporarily slowing the Winner decline development, but advance rates returned to budget during May once the ground conditions improved. Ore delivery to surface from Winner is on track to commence early next quarter. The probable mineral reserve at Winner is 144,003 tonnes of ore at 4.26 per cent Ni for 6,139 tonnes (13.5 million pounds) of Ni metal.
Deacon resource down-plunge drill program
A 500-metre platform EM hole (HS301A) below Deacon from near the base of the Helmut South decline was completed; however, due to technical difficulties, approximately only the top 300 m of the hole was surveyed. The results indicate a very strong geophysical conductor to the bottom of the hole. The extent of the geophysical survey remained within the lower limits of the inferred resource.
Due to the strength of the conductor, two parallel EM drill holes are planned to commence shortly to test the area 200 m beyond the current base of the Deacon resource.
Deacon resource up-plunge drill program
The drilling focus during the quarter shifted to the up-plunge portion of the Deacon channel structure, between Helmut and the currently defined top of the Deacon resource at approximately 514,000 mN. An initial 11-hole drill program comprising 2,030 metres was completed from Stockpile 5 off the Helmut south decline at minus-444 mRL.
The aim of this program was to define the general shape and direction of the channel structure to determine an appropriate position for the development of a dedicated hangingwall drill drive to facilitate resource definition drilling of the up-plunge extent of Deacon.
No significant mineralization was encountered about the ultramafic/basalt contact in any of the Stockpile 5 drill holes, although broad intervals of highly altered, iron-sulphide-rich basalt were intersected in several drill holes. Assays are awaited for these zones. The Stockpile 5 drilling indicates an abrupt shift in the orientation and shape of the Deacon/Helmut channel structure occurring at about 514,000 mN (the previously defined northern limit of the Deacon mineralization).
The Stockpile 5 drill station location was marginally suitable to target the extrapolated position of the up-plunge extent of Deacon due to the oblique nature of the drilling. The interpreted deviation in the Deacon mineralization or ultramafic/mafic contact from the projected trend produced a highly problematic scenario and indeterminate results. Therefore, a detailed assessment of the Stockpile 5 drilling is required before any definitive comments can be made about the up-plunge extent of the Deacon mineralization and before a dedicated drill drive can be positioned.
Lanfranchi
A resource definition drill program has commenced to evaluate the next 80 vertical metres of down-plunge continuation of the Lanfranchi orebody. The program, which will be undertaken from an extended 15K hangingwall drill drive, will comprise 40 drill holes for 4,100 drill metres.
To date, 26 holes (LAN123-148) comprising 2,437 drill metres, have been completed with assay results received from the first 10 holes as summarized in the first table. The best result was returned from LAN127 grading 5.37 per cent Ni over 24.1 metres (true thickness projected to be approximately five to six metres thick; due to oblique angle of drilling). The results to date are in alignment with the historical nature (grades and thickness) of the Lanfranchi orebody and provide continued evidence for the mineralization at Lanfranchi to continue in a similar fashion.
SUMMARY OF LANFRANCHI DRILL RESULTS
Drill
Hole Id Depth From To intercept Ni %
LAN123 35.0 29.90 31.33 1.43 9.06
LAN124 59.1 42.00 45.00 3.00 1.61
LAN125 81.5 75.70 77.45 1.75 7.66
LAN126 59.0 35.00 38.00 3.00 1.04
LAN127 107.1 68.80 92.90 24.10 5.37
LAN128 51.2 37.00 38.70 1.70 4.64
LAN129 68.1 63.00 65.00 2.00 2.15
LAN130 85.2 78.00 78.87 0.87 0.51
LAN131 123.0 NSG
LAN132 154.4 NSG
Notes: NSR -- no significant result; RL -- mine level
measured in vertical metres; all other lengths
measured in metres
The drill rig currently stationed to perform the reserve/resource delineation drilling of the Lanfranchi extension will intermittently, throughout the drill plan, undertake other more time sensitive and higher priority drill projects, such as the upcoming stope definition drill program on the Winner orebody and the down-plunge platform EM hole at Deacon (see above). The drill will then return to continue the program at the Lanfranchi extension. Therefore results from this program may be released intermittently.
The Lanfranchi orebody, namesake of the Lanfranchi nickel mine, has been mined over a down-plunge length of 1.5 kilometres, with historical production totalling 1.4 million tonnes at 2.32 per cent Ni.
Tramways dome north drill program
Surface drilling to explore the northern side of the Tramways dome for possible overturned channel structures commenced during the quarter. Five drill holes on an east-west fence pattern at 200-metre drill centres have been completed to date, targeting the inferred overturned ultramafic komatiite/mafic basalt contact. All five holes have successfully intersected the overturned contact, providing strong support for the overturned dome model and dramatically increasing the prospective area to host nickel channels within the property boundaries.
Hole TD8030 collared in ultramafic and intersected one metre grading 3.4 per cent Ni on the upper contact. The presence of nickel mineralization proximal to the hinge of the overturned fold highlights the potential for the continuity of mineralization on the overturned contact of the Tramways dome.
The initial program will test a two-kilometre-wide section of the Northern Tramways area between 39,0000 mE and 392,000 mE. The program consists of 17 to 20 proposed drill holes for 8,000 to 9,000 drill metres and will cost approximately $1.2-million (Australian). The targeted nickel-sulphide channels are not exposed at surface and therefore, the Lanfranchi joint venture relies on down-hole geophysics as the primary tool for exploration discovery.
Down-hole geophysics will be performed on all the pertinent current and historic holes to determine the presence of near-hole conductors indicative of areas of mineralized sulphides. Drilling is planned to recommence on the highly prospective overturned contact once the geophysical survey has being completed and the results are compiled.
Schmitz
A program of deep EM holes was completed from the Schmitz hangingwall drill drive during the quarter. Four holes targeted the down-plunge continuation of the Schmitz orebody and a fifth drill hole was drilled to test the projected Skinner position further to the west. Very thin zones of "Schmitz-like" mineralization were intersected in SMT111 and SMT112. Drill holes SMT113 and 114, further down plunge, were essentially barren. SKN105 intersected some weak disseminated mineralization in the projected down-plunge Skinner position. Assay results are pending.
The Lanfranchi project is supervised by John Williamson, PGeol, of Edmonton, Alta. Mr. Williamson, chief executive officer and a director of Brilliant Mining, is the qualified person as defined in National Instrument 43-101.
News 
Market Data 
Discover 
