Weda Bay's nickel deposit advancing to measured category
Friday, April 6 2001 - 05:00 AM WIB
Canadian listed nickel explorer Weda Bay Minerals Inc. announced Thursday the Santa Monica (SM) deposit had been chosen as the initial mining area, according to the company's release.
Weda Bay holds 7th generation contract of work to mine nickel and cobalt in Halmahera Island, North Maluku province.
The release said SM was currently being drilled to move the bulk of this prospect from an indicated to a measured resource category. This involved the drilling of 246 drill holes on 100 meter spacing for a total of 3,554 meters and utilizing Ground Penetrating Radar (GPR) to outline the contact of the limonite horizon with the lower saprolite horizon as well as defining the basement contact.
The release further said the Variography and geostatistical studies on SM had indicated that a 100-meter drill hole spacing and the use of GPR is sufficient for measured resource status. Similar studies on the Coastal deposits have been completed and this work is being extended to include the Jira River deposit which will also be drilled to measured resource category.
A measured resource estimate for SM would be released once this drilling is completed, said the release.
Weda Bay Minerals Inc is progressing with its detailed feasibility study on its extensive nickel and cobalt laterite deposits on Halmahera Island in Indonesia. The current indicated and inferred resource is 204 million tones at 1.37% Ni and 0.11% Co. Potential ore resources are in excess of 500 million tones.
The Lead Engineer for the feasibility study is a joint venture between Kvaerner Process (Australia) Pty Ltd and Hatch Associates Pty Ltd.
Weda bay said the detailed feasibility study would determine the project economics and encompassed developing the resource, engineering the plant, developing a tailings disposal system and determining the environmental parameters. The study was "progressing satisfactorily" and on schedule for completion by years end.
Weda Bay holds 90 percent of interest in PT Weda Bay Nickel, which runs the project while publicly listed state miner PT Aneka Tambang Tbk. (Antam) holds the rest. (alex)