TIR titan resources limited

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    5/11/02 11:58:00 AM

    TITAN RESOURCES NL 2002-10-31 ASX-SIGNAL-G


    HOMEX - Melbourne


    +++++++++++++++++++++++++
    RADIO HILL MINE


    During the September quarter, the Radio Hill nickel mine completed
    operations following the depletion of the massive sulphide resource.
    This represented a 5 month extension to the original mine life.


    Mining ceased on 6 September, 2002 and production operations were
    completed on 13 September2002.


    During the quarter 45,742 tonnes of ore were treated to yield 7,886
    tonnes of nickel concentrate for sale to WMC Resources Ltd -
    Kambalda. Contained metal was 1,044 tonnes of nickel, 677 tonnes of
    copper and 59 tonnes of cobalt.


    On 21 September 2002 a final shipment of copper concentrate was made
    and sold to the Jinchuan Group Ltd. The shipment comprised 4,008
    tonnes of bulk copper "high grade" concentrate and 388 tonnes of
    bagged "low grade" concentrate. Total contained copper was 968 tonnes
    and 135 tonnes of nickel.


    The Radio Hill mine operated for almost four and a half years and
    produced some 21,000 tonnes of nickel and 16,000 tonnes of copper
    from 900,000 tonnes of ore. It produced concentrates returning A$140
    million, an operating surplus before State Government royalties,
    exploration, corporate and funding charges etc, of $63 million and a
    direct operating cash flow of $45 million. It has left Titan well
    cashed up to the tune of $24 million.


    The key tenements involved in the operation plus the flotation
    treatment plant and all associated equipment and infrastructure were
    sold to Fox Resources Ltd for $875,000 cash plus the assumption (by
    Fox Resources Ltd) of total responsibility for all rehabilitation
    works needed for closure of the site.


    Fox Resources Ltd also exercised its option to purchase the
    disseminated, low-grade mineralisation situated stratigraphically
    above the mined-out massive sulphide orebody for $75,000 cash. This
    payment has been deferred by mutual agreement until the end of June
    2003.


    Fox Resources Ltd also has an option to purchase the Mt Sholl low
    grade nickel sulphide deposits from Titan Resources NL for $200,000
    cash, unless Titan Resources NL elects to proceed with development of
    these deposits within two years.


    Titan Resources NL retains a one per cent royalty on all production
    from these leases and from the Radio Hill and Mt Sholl deposits.


    BIOHEAP(TM) PROCESS DEVELOPMENT


    The field trials on Mt Sholl nickel/copper/cobalt ore, which have
    been in progress over the past two years at Radio Hill, were
    completed during September, 2002. The last phase comprised the
    testing of the use of ion exchange resin for product recovery as part
    of the overall process flow sheet.


    The pilot plant has been disassembled and stored in containers, ready
    for its next application. The heaps have been removed and the pads
    sterilised prior to transfer of the site to Fox Resources Ltd.


    The results of the second trial heap were consistent with the first,
    an overall nickel recovery of approximately 90 percent having been
    achieved.


    Overall, the BioHeap(TM) trials at Radio Hill have been a real
    success. The conclusions drawn can be summarised as:


    (i) The practical application of the proprietary bacterial strain to
    the oxidation, dissolution and thereby leaching in a pregnant liquor
    solution (PLS) is eminently suitable for nickel sulphide ores.


    (ii) The identification and control of the principal process
    parameters has been completed and is suitable for large scale
    commercial use.


    (iii) One of the major cost factors, acid consumption, is
    substantially lower in a field (large scale) environment than
    indicated by laboratory tests. This factor will vary from ore to ore
    and is most affected by high magnesium content.


    (iv) The "back-end" part of the overall process, being the recovery
    of a saleable product from the PLS, comprises a number of
    alternatives dependent on scale of operation, project location and
    market factors. The choices of nickel precipitation to produce a
    refinery feed (carbonate, hydroxide or sulphide), solvent extraction
    and electro winning, ion exchange to be followed by several
    alternatives, are all possible and will vary with the specific ore
    deposit.


    (v) The successful leaching of the total of the available
    ("liberated") chalcopyrite confirmed the unique characteristics of
    the BioHeap(TM) bacteria and the process.


    Work will now concentrate on moving towards a commercial-scale
    operation.


    CHINA - JINCHUAN GROUP LTD


    Laboratory column tests of Jinchuan nickel ore samples have resulted
    in a nickel recovery of 97 per cent over 12 months with further
    laboratory tests continuing to define optimum leaching conditions.


    As part of the joint development program between Jinchuan and Titan,
    a 5,000 tonne trial heap has been constructed at Jinchuan to test
    cold weather operating techniques, and to minimise the effects of the
    ore's high magnesium content. Titan personnel are being seconded to
    Jinchuan to work on this part of the program, prior to the
    formalisation of the Jinchuan/Titan joint venture.


    EXPLORATION


    CARR BOYD


    A program of drilling and exploration is in progress at Titan's
    wholly owned Carr Boyd project located some 70km north-northeast of
    Kalgoorlie. Titan's tenement holding in the area covers some 85sqkm
    and overlies the Carr Boyd layered mafic-ultramafic intrusion which
    is highly prospective for nickel and other base metal sulphides as
    well as PGM's and gold. The current work program involves RC and
    diamond drilling in the immediate vicinity of the current ore shoots
    and geophysics, geochemistry, RAB and RC drilling to identify "new"
    mineralisation outside of the mine area.


    RESOURCE DEFINITION DRILLING


    Resource definition drilling continued throughout the quarter, with
    the aims of upgrading and confirming the existing resource to JORC
    standards and to identify additional mineralisation outside the
    current ore envelope. Drilling for the quarter consisted of 20 RC
    holes for 2,192m and 10 NQ2 diamond holes for 1,530m.


    Highlights from this drilling include:


    * Delineation of down plunge depth extensions of the number one shoot
    with intersections of massive-breccia ore in holes CBD18 and CBC37.


    * Identification of significant near surface nickel sulphide
    mineralisation above the number 2-3 shoots intersected in hole CBC48.


    * Confirmation of potential to substantially upgrade the tonnage of
    number 4 shoot, with ore intersections in CBD17 and CBD17W1.


    * The identification of a potential new ore shoot approximately 90m
    to the west of shoots 2-3.


    Significant intersections from drill holes mentioned above are shown
    in Table 1.


    TABLE 1
    DRILL HOLE INTERSECTIONS-CARR BOYD


    HOLE NO NORTH EAST DIP AZI FROM TO WIDTH Ni% Cu%
    m
    CBD12 6673035 367516 -55 180 94 104 10 0.72 0.31
    CBD13 6673029 367492 -50 180 153.6 163 9.4 1.35 0.30
    CBD14 6672931 367532 -55 360 102 102.5 0.5 2.49 0.28
    CBD15 6673068 367484 -50 180 149.3 152.5 3.2 1.52 0.39
    CBD17 6672733 367484 -70 360 436.5 443 6.5 1.93 1.30
    CBD17W1 6672733 367484 -70 360 417 426.7 9.7 1.76 0.41
    CBD18 6672880 367600 -60 360 210.3 243.7 33.4 1.82 0.86
    CBC48 6672956 367536 -60 360 22 74 52 1.12 0.34
    CBC37 6672902 367599 -70 360 209 235 26 1.37 0.68


    * all co-ordinates in AMG zone 51, GDA94 Datum.


    Further RC drilling has been scheduled to test to the west of shoots
    2 and 3 where an intersection of mylonitic ultramafic rock of similar
    geochemistry to rocks within the existing shoots returned nickel
    sulphide mineralisation (CBC55 1m @ 0.82% Ni from 98m). This
    intersection could potentially represent the periphery of southwest
    plunging shoot similar in nature to the shoots already defined at
    Carr Boyd.


    A reinterpretation of the geology and ore shoots within the Carr Boyd
    mine area is underway and will facilitate the calculation of an
    updated resource figure.


    WIDGIEMOOLTHA NORTH


    The North Widgiemooltha project is located 80km southof Kalgoorlie
    and 30km southwest of Kambalda. The tenements overlie rocks of the
    Norseman - Wiluna greenstone belt. The ultramafic rocks in the
    Widgiemooltha North area have long been recognised as the host for
    large tonnage, high-grade, nickel sulphide deposits. Within the
    project area WMC Resources Ltd recognised four deposits hosting an
    aggregate of 44,000 tonnes of contained nickel, they also identified
    a number of targets with the potential of hosting nickel sulphides.


    An RC drill program of fifteen holes for 2,440m was carried out at
    the Armstrong prospect (formerly Moore) with the aims of testing the
    integrity of the WMC resource of 554,237t @ 1.77% Ni, and to test for
    plunge extensions to the mineralisation. All holes intersected a west
    dipping sequence of ultramafic flows overlying a footwall basalt
    unit. Sulphides of varying thickness and tenor were noted in most
    holes. Drilling has established the potential for extensions to the
    mineralisation both up and down the plunge of the main shoot, as well
    as the continuity of a high grade 'core' to the mineralisation.


    Results received to date are shown below in Table 2.


    TABLE 2
    DRILL HOLE INTERSECTIONS-WIDGIEMOOLTHA NORTH


    HOLE NO NORTH EAST DIP AZI FROM TO WIDTH Ni%
    m
    WDC1 6521960 360060 -60 90 64 73 9 2.54
    incl 70 72 2 8.90
    WDC10 6522040 359990 -60 90 99 106 7 2.16
    incl 104 105 1 5.35
    WDC11 6522040 359890 -60 90 190 191 1 1.67
    WDC12 6522068 360072 -60 90 40 52 12 1.19
    incl 44 45 1 2.43
    WDC13 6522290 359990 -60 90 52 80 28 0.68*
    incl 68 76 8 0.85*
    WDC14 6522290 359940 -60 90 40 52 12 0.61*
    WDC15 6522070 359920 -60 90 146 154 8 1.90
    incl 152 154 2 3.54


    All hole co-ordinates in AMG zone 51, GDA94 Datum.
    * Denotes composite assay with re-splits to follow


    The high-grade drill intercept in hole WDC1, shown in Table 2, is
    situated at the southern, near-surface portion of the Armstrong
    massive nickel sulphide ore shoot. With the encouragement provided by
    this initial drilling program, Titan is confident that further work
    can significantly upgrade the current resource estimate.


    The McEwen nickel sulphide mineralisation (formerly 360N) is
    situated to the north of Armstrong deposit. WMC Resources Ltd
    previously has estimated a resource of 1,222,566 tonnes at 1.81%
    nickel for McEwen. The highly prospective basalt-ultramafic basal
    contact is continuous over the 2.5kilometres between the Armstrong
    and McEwen deposits and remains virtually untested. The company's
    on-going exploration will focus on confirming and expanding the
    current resource estimates and will target this intervening area for
    the identification of more massive nickel sulphide mineralisation.


    Drilling will continue during the December quarter.


    W J Ryan
    MANAGING DIRECTOR


    For further information on these matters and on Titan Resources NL in
    general please contact:


    William J Ryan
    MANAGING DIRECTOR


    or


    Flavio L Garofalo
    COMPANY SECRETARY


    Telephone: 61 8 9481 6040
    Facsimile: 61 8 9481 6035


    NOTE:


    The mineral resources detailed in this report accurately reflect
    information compiled by Karilyn Farmer of Titan Resources NL who has
    relevant experience in relation to the mineralisation being reported
    on to qualify as a Competent Person as defined by the Australasian
    Code for Reporting of Identified Mineral Resources and Ore Reserves.




 
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