Results from drilling at Zebediela and and Burgersfort suggest that SAN now sits on two potential large open pit nickel mines.
URU also announces that seasoned mine developer Mike Houston has joined the team as SAN Nickel CEO. With a PEA out soon and with SAN now fully mobilised and working towards an IPO this year, URU is likely to see significant value returned back to its own share holds when the SAN liquidity event happens later this year. It will be interesting to see what valuation is placed on SAN, but it looks at this stage that it could be massive, only good news for URU shareholders.
Also take a look at who has been mobilised for the PEA, all the big boys;
Details of the Preliminary Economic Assessment Study ("PEA")
Significant progress has been made in proving-up the selective recovery of disseminated nickel and magnetite from the Zebediela ore body using conventional technologies. The MSA Group has been commissioned to conduct a PEA, which is currently underway and is based on work performed by the following experts:
· TWP Engineering, responsible for the comminution circuit design;
· Bateman Engineering N.V., responsible for the concentrator design;
· Mintek SA, responsible for the comminution test work;
· SGS South Africa Pty Ltd., responsible for mineralogy work and magnetite recovery test work;
· Maelgwyn Mineral Services Africa Pty Limited, responsible for nickel flotation test work;
· Professional Cost Consultants Pty Ltd., responsible for the process facility costing;
· The MSA Group, responsible for the NI 43-101 compliant mineral resource statement and accompanying NI 43-101 technical report, mine plan, mine and infrastructure costing, environmental studies, financial model and collation of the overall PEA report
It is anticipated that the PEA study will be completed during Q2 2012.
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See below;
South African Nickel Joint Venture Update
Ongoing drilling continues to confirm large disseminated nickel resources at Burgersfort and Zebediela nickel projects, South Africa
Highlights
· Additional drilling results from both the Burgersfort and Zebediela nickel projects confirm large open pit disseminated sulphide nickel resources. The first phase of drilling has now been completed on both projects.
· URU Metals has satisfied the terms of the Joint Venture Agreement and has fully vested its interest in both projects.
· The South African Nickel Joint Venture ("Joint Venture") has engaged MSA Group to complete a Preliminary Economic Assessment ("PEA") on the Zebediela Nickel Project.
· Appointment of Mike Houston as CEO of the Joint Venture.
Commenting on the nickel joint venture update, Paul Loudon, Non-Executive Chairman of URU Metals, said: "The results continue to be extremely pleasing and indicate that both Burgersfort and Zebediela host large open pit disseminated sulphide nickel resources. Furthermore, the economic potential of one of these projects, Zebediela,will be indicated with the completion of a PEA. I am particularly pleased to announce that Mr. Mike Houston, a highly experienced mine builder has joined the team. Mike will lead the feasibility assessments and development of the projects on behalf of the Joint Venture. "
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