wingellina world class nickel deposit

Wingellina – World Class Nickel Deposit
Metals X Limited released its revised resource estimate for the World Class
Wingellina Nickel Limonite deposit in the Central Musgrave Ranges of Western Australia.
The total Identified Mineral Resource estimate contains over 2 million tonnes in contained
nickel metal and over 150,000 tonnes in contained cobalt. Following infill drilling over the
past 2 years, 85% of the resource is now at Measured and Indicated status (JORC) enabling
Metals X to take the project through feasibility studies with a view to establishing a very long
project life.
Metals X Managing Director, Peter Cook said “This is a great result for the Company and we
look forward to setting the project on the path to becoming one of Australia’s largest and
longest life nickel-cobalt producers. The deposit currently ranks well in size compared to
existing producers Murrin-Murrin and Ravensthorpe, and is estimated to be the 16th largest
undeveloped nickel oxide deposit in the world. As big as it currently stands, we are yet to
realise the full potential of the project area which we believe it still holds potential for the
resource to grow significantly larger. In addition, our growing understanding of potential
sulphide genesis models and make-up of the large Wingellina layered intrusive complex
continues to excite us about the potential for a nickel sulphide discovery, akin to the Nebo
and Babel discoveries (WMC now BHP) within a similar geological environment in the
nearby West Musgrave Ranges.”
Metals X will now update and complete its Scoping Study estimates before a decision to
embark on a detailed feasibility study for the project is made.
Enquiries: Peter Cook
Managing Director


PRESS RELEASE
WINGELLINA – WORLD CLASS NICKEL DEPOSIT 16 MARCH 2007
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WINGELLINA RESOURCE ESTIMATE
Metals X has completed approximately 40,000 metres of drilling on the Wingellina Prospect at its
Central Musgrave Project in the past two field seasons. The majority of this work has been
focussed upon the infill and more detailed delineation of the Identified Mineral Resource. The
objective for Metals X in this process has been to define the Measured and Indicated resource
estimates to sufficient levels to enable the project to move to feasibility with the confidence of a
project life in excess of 30 years.
Metals X has achieved this objective and has re-calculated its Identified Mineral Resource estimate.
The Wingellina Prospect is now estimated to contain 2.03 million tonnes of Nickel metal and
157,800 tonnes of Cobalt metal with 85% of the resource estimate being categorised as Measured
and Indicated. Based upon the simplicity of mining, being mainly free-dig style open cast mining
with very low waste to ore ratio’s, it is expected that the vast majority of the measured and indicated
resources will convert to Proven and Probable Reserves.
The following tables summarise the Identified Mineral Resource estimates for the Wingellina
Prospect at 0.5% Ni, 0.7% Ni and 1%Ni cut-off grades.
Wingellina – Identified Mineral Resource Estimate (March 2007)
0.5% Ni Cut-off Million Tonnes %Ni % Co % Fe2O3
Measured 56.9 Mt 0.98 0.077 47.9
Indicated 125.5 Mt 0.94 0.073 45.4
Inferred 30.8 Mt 0.95 0.070 44.5
Total 213.2 Mt 0.95 0.074 45.9
0.7% Ni Cut-off Million Tonnes %Ni % Co % Fe2O3
Measured 47.6 Mt 1.06 0.083 49.6
Indicated 100.5 Mt 1.04 0.078 47.4
Inferred 25.1 Mt 1.04 0.075 46.1
Total 173.2 Mt 1.04 0.079 47.8
1.0% Ni Cut-off Million Tonnes %Ni % Co % Fe2O3
Measured 25.4 Mt 1.23 0.093 52.0
Indicated 50.0 Mt 1.23 0.087 49.8
Inferred 11.9 Mt 1.25 0.082 47.1


Metals X will use this new resource model to generate conceptual mining plans for at least the first 20
years of production to update and complete its scoping study ahead of the decision to embark on a
detailed feasibility study for the project.
Wingellina is estimated to be the 16th largest undeveloped nickel oxide deposit in the world. Unlike
most of Australia’s Nickel Laterite deposits, Wingellina is more correctly termed a Nickel Limonite
deposit, exhibiting different mineralogical characteristics and associations. The deposit is typified as a
high iron (approx. 48% Fe203), low Magnesium (approx. 1.7% Mg) moderate grade (0.95-1.5% nickel
and 0.05% - 0.10% cobalt) oxide deposit formed by intense weathering of ultramafic rock units of the
Wingellina layered intrusive complex.
Total 86.3 Mt 1.23 0.088 50.1