Weda Bay says metallurgical test results improves nickel project economics

Canadian based mining firm Weda Bay Minerals Inc said Wednesday recent metallurgical results had substantially improved the projected economics of the Weda Bay nickel/cobalt laterite project on Halmahera Island, Eastern Indonesia, by confirming saprolite resources can be mined and utilized in conjunction with the limonite resources.

Weda Bay said the test work demonstrated recoveries of up to 95 percent of both nickel and cobalt from saprolite ore at atmospheric pressure.

The company said that the results would be incorporated into a revised pre feasibility study base case as well as being included in the evaluation of a much lower capital cost scenario.

?We believe this metallurgical advantage will materially enhance the value of the Weda Bay project,? said John Lynch, Weda Bay chief operating officer.

Weda Bay owns 90 percent stake at PT Weda Bay Nickel, which operates the giant nickel and cobalt prospect. Weda Bay had earlier temporarily suspended operations after OM Group, Inc., a 19.9 percent shareholder in Weda Bay Minerals refused to continue to advance funds for the project.

The remaining 10 percent stake in PT Weda Bay Nickel is held by state miner PT Aneka Tambang Tbk. (alex)