15/10/2007 - 11:50

GME acquires nickel stake for cash, scrip issue

15/10/2007 - 11:50

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Como-based GME Resources Ltd will add will acquire an 80 per cent stake in two nickel projects in the Murrin Murrin region from Wanbanna Pty Ltd for $50,000 and the issuing of 12 million shares and 2 million options, the company has announced.

GME acquires nickel stake for cash, scrip issue

Como-based GME Resources Ltd will add will acquire an 80 per cent stake in two nickel projects in the Murrin Murrin region from Wanbanna Pty Ltd for $50,000 and the issuing of 12 million shares and 2 million options, the company has announced.

 

 

The full text of a company announcement is pasted below

The Company is pleased to announce that it has reached agreement with privately owned company Wanbanna Pty Ltd to acquire an 80% interest in Prospecting Licences 39/2831-2835 (MLA39/460) covering 9.7 square kilometres.

The project area is located approximately 4 kilometres west of the Murrin Murrin Nickel refinery. A satellite image showing the Wanbanna project in relation to Murrin North project and Murrin Murrin Nickel refinery are shown in APPENDIX 1. The NiWest Nickel Laterite project plan is attached as APPENDIX 2.

The Wanbanna project area is one of the last known uncommitted nickel laterite resources in the Murrin Murrin region and is considered to be highly strategic as it abuts the Company's Murrin North project and provides a material increase in the overall resources held in the NiWest Nickel Laterite project.

The following table shows the inferred polygonal resource estimates calculated at various nickel cut off grades from the existing air core drilling completed at the project.

Wanbanna Project Inferred Resource Statement

Ni Cut Off GradeMillion Tonnes%Ni%Co
0.70%14.91.000.07
1.00%5.51.280.10
1.20%3.01.410.11


Under the terms of the agreement the Company will reimburse the vendors $50,000 and issue 12 million fully paid shares and 2 million options to acquire GME shares exercisable at 70 cents each on or before 30 September 2010, in return for an 80% interest in the tenements.

Planning has commenced on an infill drilling program that is designed to upgrade the resource from inferred to indicated category. The program will also include drilling at the adjacent Murrin North project to upgrade a sparsely drilled ultramafic unit on the south eastern area of the tenement.

The Company intends to confirm the suitability of the resource to become part of the NiWest Nickel Laterite Heap Leach project, which recently announced a 14% increase in NPV to $1.68 Billion (pre tax), based on improved extraction rates.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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