JBM jubilee mines nl

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    Jubilee cautious on low grade deposit

    Michael Quinn

    Thursday, July 01, 2004
    JUBILEE Mines has deferred a decision on initiating a bankable feasibility study for developing its low grade Anomaly 1 nickel deposit, following the discovery of the high grade 1200 zone at its Cosmos operation in Western Australia.

    Recent drilling at the 1200 zone hit 2.95m grading 8.4% nickel (including 1.65m at 14% nickel), and follow up drilling is underway.

    Jubilee said that subject to results, an exploration drive may be driven over to 1200 from the existing Cosmos workings 350m away.

    Aside from allowing additional exploration of 1200, such a drive could also be used for further assessment of the nearby Anomaly 1.

    A scoping study and drill out over the last six months of Anomaly 1 has shown it contains 36 million tonnes grading 0.74% nickel for around 270,000t of contained nickel, including a higher grade 14Mt at 0.98% nickel for around 136,000t.

    Jubilee is believed to be on track for producing around 12,000t of nickel this year from its high-grade Cosmos Deeps mine, generating a 2003/04 profit in the order of $100 million.

    On current reserves Cosmos Deeps run out of ore in 2007/08.

    However the company is banking on the 15km long basal contact that hosts Cosmos Deeps as containing further nickel deposits.

    Shares in the company rose 14c to $4.15 in early afternoon trade following this morning's announcement.

    Cosmos is nestled nicely in elephant country. Jubilee is now conducting exploration at the Miranda project area, 11km to the north-east.
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