Nickel estimate for Agata mines upped

Canadian mining company Mindoro Resources Inc. has increased its mineral resource estimate for the Agata Nickel Project in the Surigao nickel district with a slight decrease in mineral grade.

According to company president and CEO Jon Dugdale, the revised figures would support a longer mine life than initially estimated.

In a copy of a report sent via e-mail, the company said the updated measured and indicated resource now totaled 42.76 million tons, of which nickel content amounted to 430,000 tons. Mindoro Resources said this is 10.1 million tons, or 31 percent higher than the September 2010 estimate.

The report said the total inferred resource was updated by 0.75 million tons to 2.435 million tons at 0.99 percent nickel.

“This significant increase to the resource base at Agata Nickel Project and regionally will provide for additional mine life beyond the 15-year project described in the March 2011 preliminary economic assessment. Additionally, it provides the opportunity for early production based on high-iron limonite at the top of the laterite profile,” Dugdale said.

Typical nickel laterite ore deposits are low-nickel, high-tonnage deposits located close to the surface, according to mining experts.

A total of five regional exploration targets have now been tested around the Agata area: Bolobolo, Karihatag and Agata South, where resources have been defined; and Tapian East and Canaga, where no resource has been defined to date due to lack of continuity between mineralized targets.

Mapped laterite exploration targets not yet drill-tested include the areas dubbed as San Jose, Tapian Central (Mamatfa), Tapian West (Corplex), Villariza and Mat-I.

Drilling will continue as access to these areas improves, Mindoro Resources said. The remaining exploration target for these areas is under review and subject to initial drilling to determine thickness, according to the company report.