Allegiance Mining NL - Quarterly Report for December 2006



    SYDNEY, Australia, Jan. 30 /CNW/ -

    
    Principal Points

    AVEBURY NICKEL PROJECT IMPLEMENTATION
    -   Construction continues at full pace and all long-lead items and
        critical-path components have been ordered in a timely manner by the
        EPCM Engineering firm, Metplant of Perth.

    -   The project will have a mill throughput of 900,000 tonnes of ore per
        annum producing more than 8,500 tonnes of nickel ("Ni") in
        concentrates per annum. The business plan is to extract and sell
        70,000 tonnes of Ni in concentrates from the currently known
        resources.

    -   All infrastructure components including roads, Tasmanian grid
        hydro-electrical power, dewatering pump station and pipelines, water
        management systems, and the Zeehan office + accommodation are
        complete.

    -   The Processing Plant site is cleared and levelled ready for
        construction and Metplant's site manager has moved to site for the
        construction phase. Two shafts for ventilation and services are fully
        operational.

    -   The mining contractor, Barminco Limited has been selected and has
        recommenced mine development to deliver up to 1.0 million tonnes of
        ore per annum at full production.

    -   Recruitment firm Mining People International is assisting the
        recruitment of the operating workforce - a process expected to take
        several months.

    EXPLORATION
    -   The new SAXON discovery is likely to be a new line-of-lode parallel
        to the East Avebury line-of-lode and all within 2 kilometres of the
        Avebury mill. In-fill drilling of the East Avebury-Saxon lines-of-
        lode has begun.

    -   Avebury resources are 10 million tonnes averaging 1.14% Ni containing
        114,000 tonnes of Ni.

    -   Orebody widths are typically 10 metres to 40 metres in good ground
        conditions.

    -   Drilling east and west of the known resource is encountering
        additional mineralisation.

    -   Higher grade ore zones near to the current mine access have been
        proven up, and in the case of North Avebury, the core high grade zone
        has been extended by over 100 metres down-dip.

    FINANCE & CORPORATE
    -   Cash balance at the end of December stood at A$50.2 million.

    -   Share placement to Jinchuan Nickel Group of China to raise
        A$4 million announced in January.

    MARKETING
    -   US$2.2 billion offtake agreement with Jinchuan Nickel Group of China
        remains a cornerstone agreement that brings major benefits to the
        Avebury Nickel Project.
    

    Electronic copies of this and other reports are available on our website:
 www.allegiance-mining.com.au

    To receive email notifications of future releases, subscribe by email: 
mining@allegiance-mining.com.au




For further information:

For further information: Tony Howland-Rose, Chairman: +61-2-9397-7777 or
+61-418-972-112

Organization Profile

ALLEGIANCE MINING NL

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890