SYDNEY, Jan. 15 /CNW/ - Allegiance Mining (ASX Code: AGM) today announced
the upgrade and expansion of Mineral Resources at its Avebury Nickel Mine in
Tasmania. Resources estimates increased by 10 per cent compared to previous
estimates announced in April 2007. A full copy of the report is available at
www.allegiance-mining.com.au Total contained nickel in resources increased by
14,000 tonnes to 172,000 tonnes of nickel during 2007, which continues the
pattern whereby resources of nickel ("Ni") at Avebury have increased every
year since 2005.
Resources at the Avebury Nickel Project have increased by 46% since 2005
as exploration has proceeded and as the mine is being developed.
The resource upgrade is based on a recent infill drilling program,
completed ahead of schedule, which focused on the ore body adjacent to the
existing Avebury mine. The results from the infill drilling program have
significantly improved geological confidence and therefore allowing the
conversion of approximately 1.8 million tonnes of Inferred and Indicated
Resource, to a Measured Resource category.
The Avebury nickel sulphide ore system is known to extend in an east-west
direction for more than 2,000 metres as a series of sub-parallel semi
continuous zones along and across strike. In the central area nickel has been
located at various horizons for over 1600m north-south. Avebury remains highly
prospective for additional mineralisation along and across strike and to depth
within trucking distance of the mine.
The recently reported discovery of a new ore line of lode at Foundation
Stone is still at the exploration stage and is not included in the increase in
resource estimates reported today.
Tony Howland Rose, Chairman of Allegiance Mining, said the increase of
resources at the Avebury Nickel Mine continued a long trend of Allegiance
successfully increasing resource estimates at the Avebury mine and
demonstrated the enormous potential value still to be unlocked at the
Allegiance Nickel Province.
Exploration at Avebury is most effective with a discovery cost of only
5c per pound of nickel.
"Resources at Avebury have been increasing at a solid rate as exploration
has proceeded and as the mine has been developed. This encouraging trend in
the company's nickel resource base has been achieved despite the exploration
emphasis being on the immediate area around the Avebury Mine and near-mine
extensions during the development of this, our first nickel mine.
"The Company has also recently announced the commencement of a major
regional exploration drilling program, including delineation drilling of the
known nickel-copper-platinum resources at Melba Flats some 24 kilometres
northeast of Avebury.
"This exemplifies the potential of the Allegiance Nickel Province, only a
small proportion of which has been explored to date. The possibility for a
major expansion in the size of the company's nickel business through
exploration success in coming years is very high. The Province could hold
tremendous future value and the Allegiance Team are focused on unlocking that
value for the benefit of shareholders. Tonnes of potential to come!" he said.
A full copy of this announcement is available at
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