Australian Mines Increases Sconi Project Mineral Resource

THE DRILL SERGEANT: Australian Mines (ASX: AUZ) released an updated Mineral Resource estimate for the company’s 100 per cent-owned Sconi cobalt-nickel-scandium project in North Queensland.

Australian Mines said it anticipated the new Mineral Resource estimation to result in substantial flow-through benefits to the project’s overall development economics.

A recent expansion drilling program delineated consistent high-grade nickel and cobalt zones across the project area, with some assays from the program exceeding previous results.

The Greenvale nickel deposit’s in-situ material now stands at 24.4 million tonnes, up 63.2 per cent from 14.95 million tonnes in the previous estimate with the adjacent Lucknow deposit now at 14.62 million tonnes, up 94.6 per cent from 7.51 million tonnes previously.

The two deposits, combined with the Kokomo deposit, take the project’s total to 75.71 million tonnes at 0.6 per cent nickel, 0.08 per cent cobalt (0.83 per cent nickel equivalent) for 455,579 tonnes nickel, 57,157 tonnes cobalt (627,945 tones nickel equivalent).

“This Mineral Resource update for the Sconi project is a major boost for the company’s development plans, as we head towards our target of first construction activities at Sconi later this year, pending a final investment decision on the project,” Australian Mines managing director Benjamin Bell said in the company’s announcement to the Australian Securities Exchange.

“With an updated Mineral Resource, Australian Mines is positioned to become a significant cobalt, nickel and scandium supplier through the Sconi project – a project that has already shown to be commercially viable via the November 2018 Bankable Feasibility Study.

“This updated Mineral Resource is likely to further enhance the economics of the project, and in turn provide additional long-term benefits for our investors and off-take partner.

“The fact we have managed to almost double the Resource tonnage at the Lucknow deposit, which will be our initial primary source of cobalt production and added significant tonnes at the previously-mined Greenvale deposit is testimony to the world-class nature of the Sconi project, as well as the scale and grade of the mineralisation contained within our broader tenement package.”