Jordex extends Loma nickel option

A Venezuelan company managed and owned 50% by Jordex Resources (TSE) has extended an exclusive option on its Loma de Hierro nickel project to Anglo American Corp. of South America for an additional 90 days.

The two companies entered into a preliminary agreement earlier this year which gave Anglo American an exclusive participation option to buy majority control of the lateritic nickel deposit in Venezuela. The companies completed a drill program during the spring and summer of this year.

Over the next 90 days, both parties will continue to assess project information. Both also agreed to use their best efforts to complete a final contract for the sale of a majority interest in the deposit to Anglo American. The Loma de Hierro deposit was drilled and studied from 1940 through to 1970. More than 70,000 ft. of drilling was done which outlined a deposit of 38 million tonnes grading 1.55% nickel.

The Jordex subsidiary and a consulting firm used a 1.5% nickel cutoff and the original data to outline 22.8 million tonnes of 1.8% nickel. A moderate drill program and data analysis of previous work will continue over the next 90 days.

Elsewhere in South America, Tiwanacu, 67% owned by Jordex, participated in a tender organized by a Bolivian state-owned mining company in the privatization of the polymetallic Bolivar mine.

The tender was successful in that Tiwanacu was invited to negotiate for the mine. However, the invitation was predicated upon a joint venture structure whereby it would contribute assets in a certain area and fund the mill expansion and additional work at Bolivar for a total investment of $14 million to earn 50% of the project.

Tiwanacu had wanted to expand its mill at nearby Poopo as the site for milling from all mining sites. But the state agency wanted the company to consider moving this mill to the Bolivar mine site, which Jordex said would have meant delays and a substantial increase in capital costs. Tiwanacu declined to submit an offer on this basis, and as a result, both parties discontinued discussions. However, the Jordex subsidiary plans to participate in a new tender to be called shortly, based on increased confidence in the project gained as a result of a 45-day study period.