Jan 21, 2019

Drilling results confirm Sconi’s potential

Drilling results confirm Sconi’s potential Australian Mines is upbeat about the latest drilling results at its Sconi mine near Greenvale.

Latest drilling results confirm the fact that the Sconi project near Greenvale is a “world-class deposit”, according to Australian Mines.

In an update released today, Australian Mines said the most recent drilling operation had returned high-grade cobalt and nickel intersections.

As a result, Australian Mines said it had engaged an independent resource consultant to immediately commence a re-estimation of the resource, with an updated announcement expected in April.

In today’s announcement, Australian Mines said the fact that drilling appeared to frequently intersect cobalt-rich zones that grade higher than 0.5 per cent suggested that the project was continuing to “live up to its status as a world-class deposit”.

“With the majority of assays now received from our 2018 drilling campaign to grow the cobalt and nickel resources at Sconi, it is clear that this project has enormous potential to grow beyond the already strong commercial development case highlighted in November’s bankable feasibility study,” managing director Benjamin Bell said.

“Our technical team successfully evaluated the extensional areas in both the Greenvale and the nearby Lucknow deposits ahead of the campaign and it is clear from these results that the drilling has the potential to reinforce that modelling in a significant way.

“We believe the deposits at Sconi have a lot more to give in terms of resources … and our focus now is in incorporating these outstanding results in a re-estimation of the mineral resource.

“This will allow us to undertake what we believe will be a material optimisation review of our development case for Sconi.”

Australian Mines announced in November that it expected the Sconi project to cost about $1.3 billion to develop.

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