Goldminer Gindalbie Gold NL intends to float a new company, Sally Malay Nickel NL after taking an option to buy the Sally Malay project from the Normandy group for $10 million.
Goldminer Gindalbie Gold NL intends to float a new company, Sally Malay Nickel NL after taking an option to buy the Sally Malay project from the Normandy group for $10 million. Gindalbie, which expects first gold production from its Two Rocks mine at Higginsville in Western Australia, said it was also likely to take its nickel tenements near the recent high grade Silver Swan discovery into the new company. Sally Malay, near the Argyle diamond mine in the Kimberley of WA, has an estimated resource of 5.1 million tonnes of ore grading 1.7 per cent nickel. It also has copper and cobalt credits. Gindalbie director, David McSweeney, said yesterday the company had also pegged exploration ground totalling 1,700 square kilometres in the Sally Malay region and would include the holding in the proposed float. He said it was initially planned to raise $10 million within six months to finance the first purchase payment of $6 million and feasibility studies. Negot-iations were under way with potential underwriters. He said the company believed the project could be brought into production in the short term and although conventional treatment methods would work other, new, metallurgical methods were being examined. Gindalbie is also one of the applicants for disputed tene-ments abutting Silver Swan. Ownership is to be decided by ballot.