Metallurgical Test Work
In August 2006 the Company commissioned a Sonic drill rig program to recover full core samples through the 1% nickel envelope. A total of sixteen drill holes were located over the Hepi and Mt Kilkenny resources to provide representative sample of the ore types in each resource.
The core samples were then cut, assayed, agglomerated and loaded into four separate four metre column. The column leach tests, which, commenced in November 2006 were undertaken at SGS Lakefield Oretest laboratories in Perth.
The column tests exceeded the targeted Nickel extraction rate of 70% and were decommissioned (March 2007) in preparation of Geotechnical work to confirm the strength of the agglomerates. Details of the metal extraction results from the column tests are shown in the tables below.
Throughout the test duration all columns maintained consistently high leach solution percolation rates. The percolation rates confirm that the Hepi and Mt Kilkenny agglomerates have remained stable throughout the test period, with minimal slump observed. This is a significant step forward as the stability of the agglomerate is a fundamental aspect in achieving a successful Heap Leach operation.
Table 3: 120 Day Column Test Results
| 4 Meter Column Tests | Number Days | Extraction % Ni | Rate % Co | Column Head Grade % Ni |
|---|---|---|---|---|
| Hepi #1 | 120 | 82.6 | 99.1 | 1.74 |
| MK North #1 | 120 | 80.5 | 98.7 | 1.29 |
| MK Central #1 | 120 | 78.8 | 86.0 | 1.37 |
| Mk North #2 | 120 | 81.3 | 89.1 | 1.12 |
There are currently another 6 columns being leached also showing very good Nickel and Cobolt extraction.
4 metre column tests at SGS
Lakefield Laboratory Perth WA
As a result of the highly successful column tests the Company has elected to proceed with a large scale onsite trail heap leach in an effort to expedite the project development. Planning and permitting process are now underway in anticipation of work commencing in 2008.
Commitment to a bankable feasibility study for the full scale project (30,000 – 35,000 tonnes Nickel) involving a sulphur burning acid plant and metal recovery circuits will run concurrently with the commissioning of the Demonstration project. Completion time for the acid plant would dictate full commissioning but is expected to be on line by 2012.
