Release: Weda Bay Minerals Inc.: Project Update
Saturday, September 11 2004 - 12:46 AM WIB
Resources
The drilling program to extend resource areas at the Santa Monica and Pintu deposits has been completed with final results expected next week. A new area of laterite (Boki Mekot) has also been drilled for the first time. The program comprised 323 holes drilled for 4,372 metres of drilling. Results from this program have been very encouraging as reported regularly in previous News Releases. Resource estimates are now being updated and are expected to be available early October. We anticipate a significant increase in resources.
Process Developments Confirm Potential to Reduce Capital Cost
The results from metallurgical testwork to further develop the integrated Pressure Acid Leach (PAL), Atmospheric Leach (ATL) and Saprolite Neutralization (SN) process flowsheet have been incorporated into a scoping study. The study indicates that, for a capital cost of approximately US$ 700 million, a facility can be constructed at Weda Bay to produce 52,800 tonnes of nickel and 3900 tonnes of cobalt per annum in a mixed sulphide intermediate product. This scenario offers an economically robust alternative to that evaluated in the 2002 Pre Feasibility Study, but with significantly reduced capital investment. The integrated process also allows full utilization of both limonite and saprolite ores and is expected to form the basis for future development.
Indonesia
The past year has seen some historic events in Indonesia. Laws were passed permitting universal election of members of Parliament and the direct election of the President and Vice President. The Parliament has taken action which has finally resolved the issue of mining in protected forests.
The Parliamentary election took place in April and the first round of the Presidential election in July. Interest and involvement by the electorate has been intense, and the process to date has been declared free and fair by international observers.
The second round of the Presidential election takes place later this month. Both candidates have expressed their intention to prioritize foreign investment as a part of measures aimed at stimulating the economy. The Company has already been listed as one of 13 approved to proceed under revised Forestry regulations and looks forward to progressing its project with the support of the newly elected Government.
Weda Bay Minerals Inc (WDA) is an exploration and development company focused on the world-class nickel and cobalt laterite project on the island of Halmahera in Indonesia. The project resources are currently 133 million tons grading 1.37% Ni and 0.11% Co of measured and indicated resources plus 82 million tons grading 1.33% Ni and 0.12% Co of inferred resource. All resource estimates are at cutoff grades of 1.0% Ni and 0.1% Co. Further details of the mineral resource estimates can be found in the Technical Report dated June 2003 and available at www.sedar.com.
The Company has completed an independent Pre Feasibility Study, which concludes that the Halmahera project is highly viable. The Company is now working towards the commencement of a Bankable Feasibility Study. (end of release)