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BARRA RESOURCES LIMITED

ASX: BAR

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Barra Resources Limited is an exploration and mining company with a focus on targeting and developing high grade gold and base metal deposits in Western Australia. The 50% owned Mt Thirsty Cobalt-Nickel- Manganese Project located 20 kilometres north-northwest of Norseman continues to be the prime focus for the Company this year. The Mt Thirsty Project has the potential to emerge as the world’s fourth largest cobalt supplier with capacity to deliver 3,000 tonnes of cobalt, 9,000 tonnes of nickel and 13,000 tonnes of manganese per annum during the first 3 years of production.

Barra recommenced mining operations in June 2009 at the 100% owned Burbanks Gold Mine under a new tribute mining and profit-sharing agreement with Kalgoorlie based Mulgabbie with the view of capitalising on the current strong gold price. The Company has also recommenced exploration activity at its 100% owned Phillips Find tenements and selected associated tenements. This will form an important part of the Company’s focus for next year.

Burbanks Project - gold (100% barra)

The Burbanks Project is located 9 kilometres southeast of Coolgardie, Western Australia, and consists of granted tenements totalling 13 square kilometres and covering over 5 kilometres of strike extent of the Burbanks shear. The Burbanks Mining Centre has produced in excess of 400,000 ounces from predominantly above 150 metres vertical depth from both historical underground mine workings, modern open pits and recent Barra underground production.

Burbanks has a current Indicated Resource of 250,000 tonnes at 3.43 grams per tonne gold for 27,570 ounces and an Inferred Resource of 141,000 tonnes at 2.92 grams per tonne gold for 13,240 ounces at a 1.0 grams per tonne lower gold grade cut-off, compiled in accordance with the JORC guidelines.

The Company recommenced mining operations on 15 June 2009 at the 100% owned Burbanks Gold Mine under a new tribute mining and profit-sharing agreement with Kalgoorlie based Mulgabbie with the view of capitalising on the current strong gold price. The arrangement will see Mulgabbie bearing all development, stoping, transportation and milling costs while Barra shares 50/50 with Mulgabbie all profits from the operation. The Project has the potential to generate between A$1.0 million and A$2.5 million in revenue over the next 6-12 months by focussing on the high grade components of the major lodes utilising hand held and smaller mechanised mining methods to maximise grade and reduce costs.

Mt Thirsty Project - cobalt/nickel/manganese (barra 50%)

Mt Thirsty Cobalt-Nickel-Manganese Project is located 20 kilometres north-northwest of Norseman, Western Australia. The deposit differs significantly from typical WA nickel laterite occurrences in that is completely oxidised containing mainly goethite, haematite and manganese oxide minerals with very low clay content. This makes the deposit very amenable to cheaper atmospheric leaching techniques which don't require expensive and problematic autoclaves.

Due to the intense oxidation of the ores, mining is extremely low cost as the ores can be extracted without the need for blasting. The majority of this soft ore is shallow and flat lying occurring only 10-15m below surface. Another advantage to the deposit is the location of the high grade ore zones. They are situated closest to the surface allowing the deposit to be high graded during the first 3-4 years of production, dramatically reducing capital payback.

Metallurgical testing and pre-feasibility work in conjunction with MTJV partner Fission Energy Limited has highlighted the potential world class nature of this outstanding project. The Mt Thirsty Project has the potential to emerge as the world’s fourth largest cobalt supplier with capacity to deliver 3,000 tonnes of cobalt, 9,000 tonnes of nickel and 13,000 tonnes of manganese per annum during the first 3 years of production. Cash costs have been estimated at around US$55 per tonne of ore treated, making the Mt Thirsty Project one of the lowest cost atmospheric leaching operations in the world.

Earlier this year the MTJV set out to explore the Mt Thirsty area for a potential primary sulphide source to the world class Cobalt- Nickel-Manganese Oxide Deposit. After completing surface mapping and focussed geophysical surveys over priority areas at Mt Thirsty, the first ever diamond hole (MTDD008) searching for nickel sulphide mineralisation in the area was drilled to test a large electromagnetic (“EM”) anomaly uncovered by the geophysical surveying.

MTDD008 was successful in identifying primary nickel sulphides beneath the Mt Thirsty Cobalt-Nickel-Manganese Oxide Deposit, intersecting anomalous zones of disseminated and stringer nickel sulphide mineralisation. However, the most exciting discovery was a small 6 centimetre thick stringer of massive nickel sulphides within a much younger Proterozoic dyke. It’s thought the dyke has thrust its way up from great depths through massive nickel sulphides on the basal footwall contact dragging up fragments of nickel ore on its way to the surface. It has been the long held belief of the MTJV that the high grade Cobalt-Nickel-Manganese Oxide Deposit may have formed from a primary nickel-cobalt sulphide source nearby. It is possible that extensive massive nickel-cobalt sulphides deposited on the basal footwall contact beneath Mt Thirsty are indeed that source.

Phillips Find Project - gold (barra 100%)

The Phillips Find Project is located some 50 kilometres north of Coolgardie and consists of granted tenements totalling 38 square kilometres. The tenement package contains the Phillips Find Mining Centre where some 50,000 ounces of gold has been mined. The Newminster Deposit, within the Phillips Find Mining Centre, has a current JORC Indicated Resource of 84,111 tonnes at 4.62 grams per tonne for 12,500 ounces and JORC Inferred Resource of 32,265 tonnes at 2.50 grams per tonne for 2,600 ounces at a 0.8 gram per tonne lower gold grade cut-off. The current high gold price makes this small resource extremely attractive, potentially supplying the Company with another valuable revenue stream in the short to medium term.

Regionally, the Phillips Find Mining Centre is located at the intersection of several major gold producing structures. Controls on gold mineralisation are both lithologically and structurally complex. Alteration is intense throughout the system. Open pit mining is relatively shallow at 50 metres depth below surface. Previous drilling to over 100 metres depth clearly indicates gold mineralisation continues at depth. Management rates the Phillips Find Mining Centre high on the list of exploration opportunities within the Company’s tenement portfolio.

riverina project - nickel (barra 30% nickel rights)

The Riverina Project is located 125 kilometres north of Coolgardie on granted tenements that cover an area of approximately 120 square kilometres. Joint Venture partner and manager RRPL earned 70% equity in the project in June 2006 and in August 2007 the joint venture sold the project tenements and gold rights to Monarch Gold Mining Company Limited (“Monarch”). RRPL (70%) and Barra (30%) retain the nickel rights to the Riverina Project and Monarch must maintain the tenements in good standing. Between 2005 and 2008 the Joint Venture actively explored the Martins Zone ultramafic unit for economic concentrations of nickel laterite and nickel sulphide mineralisation.

Drilling has defined a JORC compliant nickel laterite resource in the northern area of the Martins Zone containing 2,340,700 tonnes grading 1.01% nickel and 0.06% cobalt for 23,639 tonnes of nickel and 1,440 tonnes of cobalt (0.7% nickel lower cut), or 924,600 tonnes grading 1.3% nickel and 0.09% cobalt for 12,100 tonnes of nickel and 800 tonnes of cobalt (1.0% nickel lower cut).

Exploration has also demonstrated that the Martins Zone ultramafic unit is prospective for nickel sulphide mineralisation, with drilling in the southern area of the Martins Zone returning narrow widths of high-grade remobilized massive nickel sulphide adjacent to an undeformed ultramafic footwall contact, including 2.00 metres grading 2.80% nickel from 152 metres and 0.40 metres grading 10.90% nickel from 251 metres. During 2009 RRPL commenced a comprehensive review of all historic nickel exploration data to identify additional quality exploration targets for testing.

Mine For

gold, cobalt, nickel, manganese

Location of operation(s)

Western Australia

Address

Ground Floor, 30 Richardson St
WEST PERTH, WA, AUSTRALIA

Phone

(61 8) 9481 3911

Email

Website


Last Updated

18/04/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.