Weda Bay Minerals commences feasibility study
By Alex Ginting
Friday, June 9 2000 - 05:00 AM WIB
Weda Bay Minerals Inc. (TSE: WDA) announced that the fully funded first stage of the US$18.2 million feasibility study on its extensive, high-grade nickel and cobalt laterite deposit in Halmahera, Indonesia has commenced. The study is scheduled for completion by the end of 2001.
Funding for the study arises from a previously announced agreement with a leading international nickel refiner, the OM Group (OMG). Certain aspects of the OMG agreement were ratified unanimously by shareholders voting at Weda Bay's Annual and Special Meeting on June 5th.
"We view this as a 100 percent approval rating of our strategy to maximize the value of our world class nickel deposit and the Company itself", said Louis Clinton, President and CEO, Weda Bay Minerals. "We now have funding to complete the bankable feasibility study and an excellent off-take agreement, which will significantly enhance the value of our project to potential investors and project financiers."
Initial drilling under the study involves a US$450,000 program focused on the Santa Monica project where a previously announced 11 hole, preliminary drill program intersected average thickness and grade of 11.4 metres at 1.46% Ni and 0.15% Co. The Santa Monica prospect has been mapped over an area of 9.3 square kilometres. The aim of the current program is to increase the indicated and inferred resources on Halmahera from 117 million dry tonnes to in excess of 200 million dry tonnes.
A metallurgical drill sampling program has also been completed with samples collected at Santa Monica, Big Kahuna and the coastal deposits.
Results of the current drilling program are expected in August. In the interim the metallurgical test work will commence in mid-June when the samples arrive at Hydro Metallurgical Laboratories in Brisbane, Australia.
Weda Bay Minerals Inc. is a Canadian base metals exploration and development company focused on its nickel/cobalt laterite project in Halmahera, Indonesia. The project is held under a Contract of Work between the Government of Indonesia and PT Weda Bay Nickel (90% owned by WDA's wholly owned Singapore subsidiary and 10% owned by PT Aneka Tambang Tbk. (*)