Weda Bay reports increased resource estimates at Halmahera project

Canadian mining company Weda Bay Minerals Inc said Wednesday it had revised its mineral resources estimates for Halmahera nickel cobalt project in Maluku as a result of additional drilling conducted earlier this year.

Weda Bay said the previous resources were 133 million tons grading 1.37% nickel (Ni) and 0.11% cobalt (Co) of measured and indicated resources plus 82 million tons grading 1.33% Ni and 0.12% Co of inferred resource. The new resource estimates represent an increase of 42% in indicated resources. Inferred resources have increased from 82 million tons to 159 million tons.

?With the significant increase in tonnage more selectivity with respect to cut-off grade is possible,? said Weda Bay, adding that higher nickel grades could be achieved in the early years of production by lifting the cut-off grade to 1.1% Ni or higher.

Previously Weda Bay has reported resources using combined cut-off grades of 1% Ni and 0.1% Co. Using only the 1% Ni cut-off a new resource estimate for the Weda Bay nickel cobalt project is:

Weda Bay also reported that the new revised resources at Santa Monica, the deposit planned for initial mining, were now 72 million tons grading 1.41% Ni and 0.10 % Co of measured and indicated resources plus 33 million tons grading 1.45% Ni and 0.05 % Co of inferred resource at a 1% Ni cut-off. At planned mining levels of approximately 5 million tons of ore per year this represents sufficient ore for twenty years of production.

The Pintu resource has been re-estimated and is now 25 million tons grading 1.44% Ni and 0.09% Co of indicated resources plus 34 million tons grading 1.68% Ni and 0.08 % Co of inferred resource at a 1% Ni cut-off. Meanwhile, the Boki Mokot inferred resource has been estimated as 18 million tons grading 1.43% Ni and 0.09% Co at a 1% Ni cut-off.

Weda Bay 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.

Weda Bay through its subsidiary PT Weda Bay Nickel owns 90 percent of the project while state miner PT Aneka Tambang holds the remaining 10 percent stake. (Robert)