The timing’s right for local resource pair

WEST Musgrave Mining is acutely aware it is sitting on something hot.

Although not a lot of serious work has been done in the West Musgrave region until this season, the fight is definitely on to obtain a piece of the highly prospective territory.

Recent interest has been heightened by Western Mining Corporation’s activity in the biggest piece of land there. Apart from also trying to claim some of West Musgrave Mining’s regional interests during the past year, West Musgrave Mining managing director Don Boyer said WMC seems to have found something positive.

“We’re not sure if they’ve got elephants in their country,” Mr Boyer said. “They’re not saying much, but they must have something.

“But whether or not they’ve got the best piece of ground is the question. We focused on gaining quality land in a core area of the West Musgraves in 1998. Our land was done on selection.

“We have geological targets we’re keen to follow up on.”

With their three exploration licences in an Aboriginal reserve, West Musgrave Mining is yet to sign access agreements with the Ngaanyatjarra Land Council to commence ground-based exploration.

However, West Musgrave Mining’s chairman John Daniels was the geologist who oversaw the original government mapping of the region, and with airborne magnetic data and satellite imagery, the company is certain the geological environment could host fairly large bodies of ore.

With an agreement due to be finalised in a matter of weeks, before the company’s planned August float, Mr Boyer confirmed the company was keen to begin ground operations in light of the intense interest in the area.

“It remains to be seen how well we have picked it, but judging by the people coming to us and saying they like our bit of the land, we’re not sure if we’re understating it,” he said.

Sally Malay Mining was formed in February this year for the sole purpose of acquiring five clear title mining leases in the Kimberley region, from Normandy Group Trading.

Company management have not hesitated in advancing their plans, raising $1.8 million to complete the purchase and repay promoters, undertaking a small drilling program and contracting Clough engineering to conduct a bankable feasibility study, to include assessing the viability of constructing an on-site concentrator.

In addition, Sally Malay Mining has issued four million unlisted options and will lodge a prospectus with the ASX within two weeks, to initiate a 15 million 20-cent share IPO.

Further drilling results, expected this week, will be included in the prospectus and the company is expecting its market capital to be $12 million after the float.

Managing director Peter Harold said the project, to develop the nickel/cop-per/cobalt leases, in particular the Sally Malay deposit, had a lot of merit.

“The market is right for this type of development. At a small capital cost of just $30 million, it will be a competitive project.”

Nickel processing companies worldwide have expressed interest in the company’s deposits, with ore concentrate expected to run out at the same time Sally Mining Mining plans to commence production, in April 2003.

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