Shares in emerging Western Australian based nickel sulphide producer Sally Malay Mining Ltd jumped 16 per cent today, coinciding with positive drill results at its Pilbara operations.
Shares in emerging Western Australian based nickel sulphide producer Sally Malay Mining Ltd jumped more than 16 per cent today, coinciding with positive drill results at its Pilbara operations.
In late trade the shares had lifted to more than $1.67 each, up over 23 cents on the day to surpass their previous 12-month closing high of $1.60 per share set in April. Sally Malay shares have been rising steadily since mid-September, adding around 40 cents or more than 30 per cent this month.
The company has is an two underground mines, Sally Malay (100 per cent-owned) in the Kimberley and Lanfranchi (75 per cent -owned), which it operates 40km south of Kambalda.
Below is the release:
OUTSTANDING INTERSECTIONS AT LANFRANCHI INCLUDING 111 METRES AT 2.9% NICKEL
- New massive (matrix and disseminated) sulphide mineralisation intersected outside previously defined limits of
Helmut South Resource
- Best intersections include 111m at 2.9% Ni and 91m at 2.3% Ni (true width yet to be established)
- Massive sulphide on the basal contact returned 6.21m at 7.55% and Ni 2.34m at 5.81% Ni
- High-grade matrix sulphide of 11m at 4.29% Ni intersected above the basal contact
- New intersections have the potential to significantly increase Helmut South resource base
- Further drilling will be carried out from a dedicated drill position
HELMUT SOUTH EXPLORATION SUCCESS - NEW ZONE OUTSIDE CURRENT KNOWN RESOURCE
Sally Malay is pleased to announce excellent drill results from the latest resource delineation drill
programme completed in the vicinity of the Helmut South orebody at Lanfranchi (Sally Malay 75%). The drill
programme was initially designed to define the northern limits of the Helmut South resource on the 5750 Level (-915m
RL). Most importantly, drill holes HS212 and 215 that were collared from the 5200 Level (-860mRL) stockpile
encountered broad zones of matrix nickel sulphide mineralisation well outside the previously defined limits of the
Helmut South orebody. Three follow-up holes were drilled from ore drive positions on the 5310 and 5140 Levels with
best results including 90.9 metres grading 2.29% Ni and 111 metres grading 2.90% Ni. The assay results for these
drill holes are summarised in Table 1.
Sally Malay is particularly encouraged by the fact that the mineralisation intersected in this latest drill programme is
outside the previously defined limits of the Helmut South orebody and that two of the holes (HS215 and HS234)
contain significant massive sulphide mineralisation in addition to the broad zones of matrix mineralisation.
Commentary
It should be noted that the drill positions and orientation of the five holes completed in this current programme were
not optimal to test the thickness of the mineralisation and that each mineralised interval is expected to have a
considerable down plunge component. Notwithstanding the Company believes these latest drill results have the
potential to significantly increase the Helmut South resource which is currently reported at 511,000t at 2.71% Ni for
13,861t Ni contained. A new dedicated drill cuddy will be developed to continue testing this highly encouraging
mineralisation.
Helmut South is currently being mined by the Lanfranchi JV and in 2006/07 is forecast to produce approximately
240,000t ore at 2.3% Ni for 5,500t Ni contained.
About Sally Malay
Sally Malay is an emerging Western Australian based nickel sulphide producer with two underground mines, Sally Malay (100%
owned) in the Kimberley and Lanfranchi (75% and operator), 40km south of Kambalda. In 2006/07 our operations are forecast to
produce close to 14,000t Ni (12,700t on an equity basis) and will continue to ramp-up to over 22,000t Ni in 2007/08 (18,000t on an
equity basis) assuming the Copernicus and Winner deposits are developed in 2007. We have a significant exploration portfolio in
the Kimberley and at Lanfranchi and are ramping up our exploration activities in order to grow our resource base and increase the
mine life of our operations targeting +10 years at Sally Malay and +5 years at Lanfranchi.
The information in this Public Report that relates to Exploration Results is based on information compiled by Mr John Hicks. Mr
Hicks is a full-time employee of Sally Malay Mining Limited. Mr Hicks has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Hicks consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.
