PAIV:European Nickel making good progress at Acoje nickel project in Philippines
European Nickel (LON:ENK, ASX:ENK) said it is encouraged by the progress that has been made on the technology front at the test centre of the Acoje project in the Philippines and believes it will be making announcements about this in the near future.
Last December, the company shifted its focus from the Caldag project in Turkey to its Acoje asset. It placed Caldag on care on maintenance as it decided to wait no more for the government to sign off a crucial forestry permit, and decided instead to fast-track Acoje.
In today’s results statement covering the 18 months to March 31 2011, ENK said it is considering all options regarding Caldag, including an outright sale, part sale or joint venture of the project. It is also reviewing the overall project footprint in order to present a more environmentally, socially and politically acceptable project. The most appropriate way to move forward should become clearer over the next few months.
As of the date of this report the trial heap leach project at Acoje has been under irrigation with acid for more than two months. The rain mitigating measures are performing excellently with several high event rainfalls occurring at site.
The laterite heap has maintained its structure and acid is freely percolating through the heap. In addition the bankable feasibility study team based in Manila is now complete, resource drilling at the Acoje tenement has commenced, and tender of the feasibility study manager's role has closed with bids in the assessment stage.
Chairman David Whitehead said: “The current cash position of the company is satisfactory and we are not planning to raise further capital from our shareholders in order to complete the Acoje BFS.
“The company expects that it will fund its working capital requirements from the sale of nickel laterite ore through a direct ore shipping contract at Acoje (with strategic partner DMCI Mining). The first shipment is imminent. In addition we have commenced the sale of surplus assets and have already signed contracts for the sale of the Barlo and Abogado properties in the Philippines,” he added.
