Brilliant Mining ups Deacon indicated resource by 80%
2007-04-16 06:59 MT - News Release
Mr. Mike Sieb reports
BRILLIANT MINING CORP.: 32% INCREASE IN DEACON INDICATED RESOURCE AND 80% INCREASE IN DEACON INFERRED RESOURCE
Brilliant Mining Corp.'s recent completion of the resource delineation drill program and subsequent upgrade to the mineral resource estimate has significantly increased the Deacon indicated resource from 37,540 tonnes to 49,697 tonnes (109,563,130 pounds) of contained nickel metal and the inferred resource from 4,650 tonnes to 8,389 tonnes (18,494,579 pounds) of nickel metal. "Since October, 2006, the Deacon has rapidly evolved from discovery to a significant component of the Lanfranchi nickel mine's resource inventory and one of the largest nickel resources in the world-class Kambalda nickel district," stated Brilliant Mining chief executive officer, John Williamson.
Key Point Summary
-indicated resource increases 12,157 tonnes of nickel metal, with 1,606,588 tonnes at 3.09 per cent nickel for 49,697 tonnes of nickel metal;
-inferred resource increases 3,739 tonnes of nickel metal with 302,977 tonnes at 2.77 per cent nickel for 8,389 tonnes of nickel metal;
-massive sulphide component contributes 184,719 tonnes at 7.49 per cent nickel for 13,837 tonnes of nickel metal;
-the Deacon Resource remains open both up and down plunge;
-drilling to test the up-plunge extent at Deacon has commenced;
the Deacon/Helmut nickel sulphide channel now contains the greatest volume of defined nickel on the property; and
-detailed mine planning is under way with a production target as early as the third quarter of 2007.
"Current interpretation indicates that Deacon and Helmut South represent one single larger deposit. This would make the Deacon/Helmut nickel sulphide channel the fifth-largest deposit ever discovered in the Kambalda region, and highlights the substantial economic impact that Deacon could have on both the Lanfranchi nickel mine and Brilliant's future operations," stated BMC chairman, John Robins.
The Deacon mineralization has been the focus of an underground resource definickeltion drill program from a dedicated hangingwall drill drive since late November, 2006. Drilling from the drill drive was completed at the beginning of April, 2007. A total of 44 underground diamond drill holes, comprising 7,106 metres were completed and now form the basis of this upgraded indicated and inferred resource estimate.
DEACON -- APRIL, 2007, MINERAL RESOURCE ESTIMATE (UPGRADED)
Ore Ore Ni Ni Cu Cu
Class type tonnes % tonnes pounds % tonnes pounds
Indicated Diss/
Matrix 1,421,869 2.52 35,860 79,057,767 0.23 3,246 7,156,205
Mass-
Indicated ive 184,719 7.49 13,837 30,505,363 0.61 1,122 2,473,587
Total Diss/
Indicated Matrix/
Massive 1,606,588 3.09 49,697 109,563,130 0.27 4368 9,629,792
Inferred Diss/
Matrix 302,977 2.77 8,389 18,494,579 0.27 815 1,796,767
(i)See table reference notes at bottom of news release
Deacon is a coherent zone of disseminated and matrix-style mineralization containing significant zones of high-grade massive sulphide mineralization. The mineralization occurs within a well-defined "channel" structure located immediately to the west of Helmut South. The channel appears to be oriented subparallel to the Helmut South orebody, with mineralization outlined so far over a strike length of 450 metres, an increase of 75 metres on the previous estimate, and is still open both up and down plunge.
Latest drill results
DEACON RESOURCE -- LATEST DRILL RESULTS
Pierce Pierce True
point point Pierce width Ni
Drill point Interval
hole north east RL From To (m) (m) %
HS268 513850 391665 -598 85.00 90.10 5.10 4.00 3.69
Plus 513858 391664 -605 95.75 100.70 4.95 3.00 3.00
HS271 513951 391570 -521 166.70 202.45 35.75 14.00 2.15
HS272 513764 391677 -618 71.16 75.00 3.84 2.50 1.91
HS273 513738 391694 -610 68.00 77.00 9.00 4.00 2.27
HS274 513668 391614 -709 174.50 206.90 32.40 12.00 2.64
Including massive sulphide 204.90 206.90 2.00 0.75 7.81
HS275 513966 391593 -512 189.00 208.00 19.00 8.70 1.86
HS277 513884 391583 -604 127.30 155.50 28.20 18.90 3.86
Including massive sulphide 150.00 153.50 3.50 2.40 7.29
HS278 513824 391590 -617 119.30 123.90 4.77 3.10 2.40
HS279 513835 391600 -627 116.00 126.65 10.65 8.40 2.92
Including massive sulphide 125.50 126.65 1.15 0.90 7.14
HS280 513842 391642 -621 76.80 109.50 32.70 30.5 4.02
Including massive sulphide 99.78 111.35 11.57 10.80 6.84
HS281 513736 391611 -671 132.07 148.05 15.98 10.90 2.60
HS282 513736 391633 -675 121.19 143.01 21.82 14.50 3.17
Incl HG matrix + massive
sulphide 136.95 143.01 6.06 4.00 5.07
HS283 513792 391632 -666 98.00 131.12 33.12 29.80 4.03
Incl HG matrix + massive
sulphide 107.13 131.12 23.99 21.60 4.63
HS284 513882 391635 -596 101.30 123.50 22.20 19.60 2.65
HS285 513666 391573 -700 NSR
HS286 513583 391620 -775 233.40 305.55 72.15 16.40 2.95
Including 253.00 305.55 52.55 11.90 3.25
Production plans
The Deacon upgraded indicated resource estimate of 49,697 tonnes (109,563,130 pounds) of nickel metal is 2.4 times larger than the initial estimated Helmut South indicated resource of 729,000 tonnes at 2.9 per cent nickel (21,000 tonnes of nickel metal), which underpinned the original purchase of the Lanfranchi mine by the Lanfranchi joint venture. In addition, the Deacon resource remains open both up and down plunge, providing the potential for future growth. Past nickel production and contained reserve/resources for the Deacon/Helmut channel structure make it the most nickel-bearing channel structure within the Lanfranchi mine/Tramways Tenements area. Total historical nickel production by WMC Resources from the Lanfranchi Mine/Tramways Tenements (prior to the acquisition of the project by the Lanfranchi joint venture) was 100,000 tonnes of nickel metal.
Since the initial Deacon resource estimate was released in early March, 2007, the drilling focus has been two-fold. Firstly, to confirm continuity between areas of massive sulphide mineralization which has enabled the previously reported high-grade inferred resource of 101,000 tonnes at 4.59 per cent nickel to be converted to the indicated resource category. Secondly, additional drill holes were completed around the then known northern (upper) and southern (lower) limits of the resource, thereby enabling increased confidence to be assigned to the resources in those areas and further extending the known strike length by 75 metres. Drilling from the dedicated Deacon hangingwall drill drive was completed by April 2, 2007.
The current drilling focus has now shifted to the up-plunge portion of the Deacon channel structure between the bottom of the Helmut orebody and the currently defined top of the Deacon resource. An initial program of holes is under way from Stockpile 5 in the footwall off the Helmut South decline. The aim of this program is to define the shape of the Deacon channel structure and identify an appropriate position for the development of another dedicated hangingwall drill drive to facilitate resource definickeltion drilling in this area.
Work is progressing on a detailed mine plan, mineral reserve estimate and project financial analysis. The joint venture anticipates that this work will be completed during the second quarter of 2007 and will result in development of the Deacon, commencing as early as the third quarter of 2007, contingent upon a positive economic feasibility and subject to the Lanfranchi joint venture, making a decision to proceed.
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