The Homeville deposit is located within the Collerina project area, approximately 50km south of Nyngan in central New South Wales. The deposit site is easily accessed via sealed and all weather roads with a road situated within 100m of the deposit. The terrain is essentially flat, with the land currently used for cropping and grazing.

The Homeville nickel-cobalt deposit was discovered by Augur Resources in 2008 after the drilling of a 4.6km linear magnetic high indicated the presence of significant near surface nickel and cobalt mineralisation.

The maiden JORC resource for the Homeville deposit is 12.2Mt at 0.91% nickel and 0.06% cobalt using a 0.7% nickel cut off Click here for the announcement on the Homeville resource. This equates to approximately 110,000 tonnes of nickel and 7300 tonnes of cobalt. Augur Resources contracted independent resource geological services company Hellman and Schofield Pty Ltd (Hellman and Schofield) to under take the resource estimate.

The resource was calculated using a strike length of approximately 1300m and has an average width of 150m using the assay and geological data from a total of 43 drill holes. Mineralisation occurs at surface in a number of locations and depth to the top of the mineralisation averages only 10m.

Hellman and Schofield note that 27 of the 43 holes that intersected mineralisation have nickel grades exceeding 0.5% at the bottom of the hole, with the average grade of these intersections 1% nickel. An increase in the resource estimate at Homeville is highly probable given that holes approximately 600m along strike have also intersected grade mineralisation and the resource was only estimated on 1300m of a 4600m anomaly.

Metallurgical testing of several samples is being undertaken to determine the most appropriate method for extracting the nickel and cobalt.

Homeville

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