Stonehenge sees SE Sulawesi nickel project onstream 2010-11

Australian mining firm Stonehenge Metals Limited said on Tuesday that existing drilling data indicated the potential of its recently acquired Mandiodo nickel project in South East Sulawesi to grow into world class deposit.

The company said it was planning the development of an operating mine by 2010-11.

Stonehenge Metals has acquired an 85% interest in the Mandiodo Nicel Laterite project that consists of two permits totaling 31 square kilometers.

Extensive historical drilling has identified a nickel taterite blanket covering an area of 4.2 km long by 1.0 km wide and up to 20 meters deep with significant potential for expansion. The average grade of the historical drilling is 1.3% nickel.

The company has started drilling program at Mandiodo earlier this month to confirm the validity of existing drilling and allow JORC code compliant resources to be calculated.

The company has an initial exploration target for the deposit of 40-60 Mt @ 1.2 to 1.4% nickel. (denny)