ENK said that it is funded to complete the bankable feasibility study for its flagship Acoje nickel project in the Philippines, which is currently running to schedule.
During the final three months of 2011, the group completed the sale of its Caldag project in Turkey for USD 40 million, which has increased its cash balances to USD 38.3 million.
This, the company said today, is sufficient to finalize the bankable feasibility study for its flagship Acoje project in the Philippines, which is on track to be completed by mid 212. In the meantime, ENK is currently reviewing funding options for Acoje, having appointed Endeavour Financial to assist with the process.
In addition to the proceeds from the Caldag sale, ENK has received revenues of USD 600,000 from three direst shipping ore shipments made during the quarter. The shipments totaled 158,276 tonnes at an average nickel grade of 1.81%.
This year, the group has shipped a further 52,146 tonnes grading 1.81% with another shipment of 1.8% ore scheduled for February 2012. On the operational front, has selected tank leaching over heap leaching as the preferred processing method for Acoje and achieved first nickel production at its Philippines pilot plant.
The plant has the capacity to produce around 200 kilograms of nickel hydroxide product per month. ENK said NHP has wider market appeal than the mixed hydroxide product previously produced at Caldag due to lower impurities. This means NHP can be used as a possible final product in some applications making it more attractive than buying pure nickel.
ENK also updated investors on the ongoing drilling program at the Zambales Chromite Mining Corporation, which is now 54% complete and is expected to conclude by the end of the current quarter.
The company said it remains on track to significantly extend the ten year mine life of the Acoje project by converting the inferred resources, which are compliant with the JORC standard, at Acoje and ZCMZ to JORC indicated status.
ENK is also set to add presently un drilled ore to the resource estimate.
(Sourced from www.proactiveinvestors.co.uk)
