positive nickel scoping study

PROGRESS ON ROMBLON NICKEL PROJECT -
MINING SCOPING STUDY COMPLETED ON BINAYA-AN
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Pelican Resources (ASX: PEL) has received an encouraging report from independent mining
consultants Snowden Mining Industry Consultants Pty Ltd (Snowden), who were engaged to
conduct a high level mining scoping study for the Binaya-an area of the Romblon project in the
Philippines (see Figure 1) (Pelican will own 75% of the project following settlement).
Snowden estimated the potential revenue for the Binaya-an deposit which is one of three
prospects in the Romblon tenement block.
The results were based on the current Direct Shipping Ore (DSO) practice of a FOB payment for
a percentage of the contained Ni at the current LME price of US$12,555 per tonne, and without
escalation of costs, contingency or NPV calculation considered and on a flat forward Ni price.
Snowden believes the project is relatively insensitive to mining costs. A 20% increase in mining
costs resulting in a minimal reduction in project cashflow.
The previously reported Inferred Mineral Resource estimate for Binaya-an is 881,000 tonnes at
1.7% Ni and is based on pit-sampling carried out over the deposit on approximately 100 m by
100 m spacing at a 1.3% Ni cut off grade. Based on the results of recent conceptual study
completed by Snowden, Pelican considers that a target in the order of 1.5 to 2 million tonnes at
similar grade exists at Binaya-an. However, the potential quantity and grade of this target is of a
conceptual nature as there has been insufficient exploration at this time to define a Mineral
Resource and that it is uncertain if further exploration will result in the determination of a
Mineral Resource of this size.
The Snowden study recommends that the deposit should be drilled at an appropriate spacing to
identify whether a larger resource exists and a block model from any resources defined be
developed for planning purposes.
Pelican Resources is preparing an exploration program for this project and plans to commence
this once the application for the MPSA has been granted.
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The main aspect of the study carried out by Snowden were:
1. The determination of a target mineralised envelope from geological logs at a 1.4% Ni cut-off;
2. A conceptual mine design inside the target envelope;
3. Appropriate equipment selection; and
4. Assessment of supplied mining costs associated with the mine design and indicative project
cashflow.
The Company continues to pursue the approval processes required for the finalisation of the
acquisition of the project area and further, it will consider commissioning a similar study for the
Bato and Taclobo Prospects on the project area.