It’s full steam ahead for the Loma de Hierro laterite nickel project.
A recent environmental approval by the Venezuelan government follows close on the heels of approval for the feasibility study.
The project is 90% owned by Jordex Resources (TSE) and Venezuelan partner Corporacion Caracas. Anglo American of South America, a subsidiary of Minorco, holds a 10% interest, with an option to buy an additional 75% from the partners for US$33 million. A decision to exercise the buy-in right must be made by Feb. 17, 1996.
The deposit contains 44 million tons grading 1.5% nickel plus 18.3% iron, based on a cutoff grade of 0.8% nickel. The mine will produce ferro-nickel (25% nickel and 75% iron) at an initial annual rate of 40 million lb. contained nickel for the first seven years, slipping to 35 million lb. for the remaining 20 years of mine life.
In the meantime, Jordex is carrying out an 8,200-ft. program of auger drilling in the Gurupi area of northeastern Brazil. The company’s holdings cover 10,000 hectares along 10 miles of a 50-mile mineralized greenstone belt.
The target is a mineralized saprolite zone up to 115 ft. deep, 4,900 ft. long and up to 1,300 ft. wide. Channel samples taken in weathered bedrock at the base of old workings averaged 0.025 oz. gold per ton, with values of up to 0.11 oz.
With 17.4 million shares outstanding, Jordex recently raised $1.3 million through a brokered private placement of 1.5 million units. Each unit is exercisable into one common share and one-half purchase warrant, subject to a holding period of 90 days from closing of the offering.
One whole purchase warrant entitles the owner to buy one additional common share at 95 cents for one year.
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