GDA's Cyclops Nickel project should be interesting as the price of Nickel has increased to US$10.23/lb. ( US$3/lb since 16 dec09), located it appears, alon strike from Western Areas Forrestania's Nickel projects and in the centre of the 500km province.
WESTERN AREAS ? Core Assets 1. Flying Fox and Spotted Quoll ? 100% owned. Two of the highest grade Nickel mines in world, based on ore reserves. Target 25,000 tpa (55M lbs) long term, sustained low cost (US$2.00 ? 2.50/lb Ni) production by 2011. Cosmic Boy nickel concentrator, major infrastructure and excellent potential for new discoveries. Significant uncommitted nickel production from 2012. 2. Regional Nickel Projects ? WSA holds dominant position in 500km long nickel province in Western Australia. 6 projects in joint ventures. WSA earning up to 70%, and equity in SXG. Recent nickel discoveries at Mt Alexander JV, Koolyanobbing JV, Lake King JV and Sandstone JV.
GDA's Cyclops Nickel project is north of Western Areas Flying Fox by the look of the maps.
Flying Fox Mine 1. Target US$2.00 ? 2.50/lb nickel cash costs before smelting/refining 2. 10,330t (22.7M lbs) nickel, avge grade 4.1% Ni ? produced FY 2009 3. Agreement with Kagara Ltd to mine adjacent Lounge Lizard deposit 4. 24% increase in Ore Reserves ? announced 5 November 2009 5. Record intersection 78m @ 9.3% nickel at T5 ? reported Jan 2010 Spotted Quoll Mine 1. Triple resource to 2.0Mt @ 6.2% Ni for 125,500t (281M lbs) nickel 2. Developing 2.5 yr open pit mine ? first ore expected April 2010 3. Feasibility study for 10 year underground mine due May/June 2010 Cosmic Boy nickel concentrator 1. Stage 1 plant (300,000tpa) commissioned March 2009 2. Stage 2 expansion underway to double capacity, due May 2010 3. Achieving 91-93% recovery, expect further improvements Growth Targets 2010 1. Target to double production to 20,000tpa (44M lbs) nickel CY 2010 2. Discover new Flying Fox or Spotted Quoll type deposit
GDA Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
