Kagara has announced several significant developments at the high grade Lounge Lizard nickel sulphide deposit at Forrestania in Western Australia, including the completion of the 670RL level. This has resulted in the mining and processing of 2,295 tonnes of nickel ore grading a diluted 3.7% nickel.

Also, the 685RL drive has now progressed to the Lounge Lizard side of the tenement boundary and ore from this development is currently being stockpiled, while three large intersections of massive and matrix nickel sulphides have been returned from the resource definition drilling program being carried out by Western Areas NL between the 350RL to 400RL depth.

Diamond drill holes KUG033, KUG037 and KUG067 (see attached longitudinal projection) achieved intersections of 16.20, 29.00 and 37.75 metres respectively. Although the intersections have been drilled at a low angle to the Lounge Lizard mineralization and it is difficult to estimate true widths, these three holes have demonstrated that the massive sulphide mineralization is very robust at this depth and represents the continuation of WSA's T5 deposit.

Assays have not yet been received for these intersections but typically, intersections of this nature assay between 5% and 10% nickel. Drill hole LFPD025, which is close to KUG037, intersected 4.73 metres grading 7.7% nickel and was excluded from the previous resource calculation because of its perceived structural complexity.

The program of resource definition drilling will be completed within the next three weeks, at which stage a new resource and reserve will be calculated prior to detailed mine planning.

(Sourced from www.proactiveinvestors.co.uk)