West Perth-based nickel explorer Australian Mines Ltd has acquired a nickel project less than 50km from Kalgoorlie for around $100,000 from Boyer Exploration & Resource Management Ltd.
The full text of a company announcement is pasted below
Western Australian-based nickel miner Australian Mines Limited has acquired the Lake Yindarlgooda nickel project to add to the Company's exploration portfolio.
Australian Mines owns and operates the Blair Nickel mine, south of Kalgoorlie, which has historically produced in excess of 26,000 contained tonnes of nickel. The Company is also fast-tracking development of its Marriott's Nickel Project, near BHP Billiton's Leinster Operations, W.A.
The Company has entered into an option agreement with Boyer Exploration & Resource Management Pty Ltd (BERM) to acquire the Lake Yindarlgooda Nickel Project.
Lake Yindarlgooda comprises two highly prospective tenements, E28/1134 and ELA 28/1134, and is located less than 50 km north east of Kalgoorlie.
Australian Mines' COO Brett Young said, "This acquisition further enhances our portfolio of nickel assets, and we look forward to commencing exploration activities in the near future."
Under the terms of the agreement, Australian Mines paid BERM $11,500 for a 24-month option to evaluate the project. Should the company opt to exercise its right to acquire the project, Australian Mines will pay BERM a further A$65,000 in cash and issue $25,000 in shares in new equity. There is an existing 1% royalty payable to Anglogold Ashanti Australia Ltd on revenues received from product sold.
The north-west trending mafic-ultramafic volcanic sequence partially exposed within the tenement is interpreted to be the extension of the Jubilee komatite belt. The belt hosts a number of nickel occurrences including the Acra deposit. The Lake Yindarlgooda nickel
laterite (Mindex reports 1 million tonnes @ 1.0%) lies along strike to the South on the adjoining tenement.
Previous limited exploration on E28/1134 reported shallow drill intercepts up to 3m @ 0.48% Ni in near fresh ultramafic. Also reported were trace sulphides including violarite and chalcopyrite in chip samples from outcrops at several locations.
