finally doing something - report

PELICAN RESOURCES LIMITED
ABN 12 063 388 821
Registered Office: Level 1, 284 Oxford Street
Leederville, Western Australia 6007
Telephone: (08) 9242 1166
Facsimile: (08) 9443 2859
8 May 2006
FOR IMMEDIATE RELEASE
SMALL-SCALE MINING PERMITS RECEIVED
FOR ROMBLON NICKEL PROJECT
DRILLING PROGRAM TO COMMENCE AND
FIRST PRODUCTION EXPECTED BY YEAR’S END
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Pelican Resources Limited (ASX: PEL) is pleased to advise that following the recent issue of the
Environmental Compliance Certificate, the Governor and the Provincial Board of the Romblon
Province have issued Small-scale Mining Permits (SSMP) for the Company’s Romblon nickel
project located on the west coast of Sibuyan Island in the Philippines.
The issue of the SSMP allows the Company and its venture partner, All-Acacia, to commence
development and mining operations on the Island. Up to 100,000 tonnes of direct shipping
lateritic nickel ore is permitted to be extracted and sold annually as part of the SSMP conditions.
The SSMP’s are outside the MPSA application (AMA – IVB – 025) area (refer to the attached
map).
The Company has contracted a drilling company for a six week drilling program on the SSMP
areas to commence on 10 May 2006.
Pelican expects the first shipment of ore to occur by year’s end.
The granting of the permits will allow Pelican to commence the upgrading of existing
infrastructure, such as roads and a loading groyne, which will be funded by the Company and its
JV partner.
It also gives the Company immediate access and exposure to the project area for the
commencement of operations pending the issue of the main MPSA.
The completion of the drilling program will enhance the operating entity’s position to negotiate
and confirm off-take agreements with intended buyers. Discussions are already underway with
interested parties.
Pelican aims to expand the current inferred resource at Romblon and establish a direct nickel
laterite ore shipping operation. Ore haulage costs and capital costs would be minimised as the
nickel resources are located within a short distance from the coast and no processing plant will be
required.
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Romblon has an inferred nickel resource of 7.26 million tones averaging 1.56% nickel at a cut-off
grade of 1.3% nickel established by two Japanese nickel companies in the early 1970s.
The equity participating interests in the JV are Pelican 75% and All-Acacia 25%.
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For further information:
Dr John Hills Mr John Palermo
Director Chairman
Telephone: +61 8 9321 9618 Telephone: +61 8 9242 1166
Facsimile: +61 8 9321 2344 Facsimile: +61 8 9443 2859
E-mail: [email protected] E-mail: [email protected]
Tiffany Winch-Buist
Professional Public Relations
Telephone: +61 8 9388 0944 or 0433 186 516
Email: [email protected]