SYDNEY, Australia, Jan. 14 /PRNewswire-FirstCall/ -- Allegiance Mining
(ASX Code: AGM) today announced the upgrade and expansion of Mineral Resources
at its Avebury Nickel Mine in Tasmania. Resources estimates increased by 10
per cent compared to previous estimates announced in April 2007. A full copy
of the report is available at www.allegiance-mining.com.au
Total contained nickel in resources increased by 14,000 tonnes to 172,000
tonnes of nickel during 2007, which continues the pattern whereby resources of
nickel ("Ni") at Avebury have increased every year since 2005.
Resources at the Avebury Nickel Project have increased by 46% since 2005
as exploration has proceeded and as the mine is being developed.
The resource upgrade is based on a recent infill drilling program,
completed ahead of schedule, which focused on the ore body adjacent to the
existing Avebury mine. The results from the infill drilling program have
significantly improved geological confidence and therefore allowing the
conversion of approximately 1.8 million tonnes of Inferred and Indicated
Resource, to a Measured Resource category.
The Avebury nickel sulphide ore system is known to extend in an east-west
direction for more than 2,000 metres as a series of sub-parallel semi
continuous zones along and across strike. In the central area nickel has been
located at various horizons for over 1600m north-south. Avebury remains highly
prospective for additional mineralisation along and across strike and to depth
within trucking distance of the mine.
The recently reported discovery of a new ore line of lode at Foundation
Stone is still at the exploration stage and is not included in the increase in
resource estimates reported today.
Tony Howland Rose, Chairman of Allegiance Mining, said the increase of
resources at the Avebury Nickel Mine continued a long trend of Allegiance
successfully increasing resource estimates at the Avebury mine and
demonstrated the enormous potential value still to be unlocked at the
Allegiance Nickel Province.
Exploration at Avebury is most effective with a discovery cost of only 5c
per pound of nickel.
"Resources at Avebury have been increasing at a solid rate as exploration
has proceeded and as the mine has been developed. This encouraging trend in
the company's nickel resource base has been achieved despite the exploration
emphasis being on the immediate area around the Avebury Mine and near-mine
extensions during the development of this, our first nickel mine.
"The Company has also recently announced the commencement of a major
regional exploration drilling program, including delineation drilling of the
known nickel-copper-platinum resources at Melba Flats some 24 kilometres
northeast of Avebury.
"This exemplifies the potential of the Allegiance Nickel Province, only a
small proportion of which has been explored to date. The possibility for a
major expansion in the size of the company's nickel business through
exploration success in coming years is very high. The Province could hold
tremendous future value and the Allegiance Team are focused on unlocking that
value for the benefit of shareholders. Tonnes of potential to come!" he said.
A full copy of this announcement is available at
www.allegiance-mining.com.au
For Further Information Contact:
Media: Ross Thornton, Third Person,
+61 418 233 062;
Stuart Carson, Third Person,
+61 403 527 755
Shareholders: Information line on 1300 135 871
(foreign holders please dial +61 3 9415 4395)
To register for immediate email updates and for electronic copies of this
and other reports please visit our website www.allegiance-mining.com.au
SOURCE Allegiance Mining NL
Media, Ross Thornton, Third Person, +61-418 233-062; or Stuart Carson, Third
Person, +61-403-527-755; Shareholders Information line on +1300-135-871,
foreign holders please dial +61-3-9415-4395
