Allegiance Mining NL
Thursday, July 26th, 2007
Allegiance Mining NL is pleased to advise that construction is at full pace and production is scheduled to commence early in the 1st Quarter 2008. The main long-lead item, the primary ball mill is being installed on site by Outotec (Australasia) Pty Ltd (formerly Outokumpu Technology Australasia Pty Ltd) for completion in late August. Foundations and steel fabrication are essentially complete and the buildings are being erected. The project will mill 900,000 tonnes of ore producing 8,500 tonnes of nickel (“Ni”) in concentrates pa. The revised business plan currently extends to June 2016 – to extend as resources expand. The entire senior management team for the Avebury Project has been successfully recruited.
Tony Howland Rose, Chairman of Allegiance said “the results from the latest drilling is showing a potential increase of over 10,000 tonnes which at current prices is in excess of US$300m. Tony continued “the drilling results that have extended the strike length of the Bintje ore zone, and the in-fill drilling of East Avebury-Saxon that has extended the strike length of the mineralised zones and the North Avebury Extended orebody have not yet been included in resources category. The resources reported as at March 2007 were 12 million tonnes with grades of 1.11% nickel containing 131,000 tonnes.
David Deitz added “we also are pleased with our offtake partner Jinchuan Nickel Group who have recently completed a placement of A$33.04 million at A$0.80 and are now the largest shareholder with 11%.