Nullagine Gold Project Pictorial Update October 2011

Transcription

1 24 November 2011 Manager Company Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam ABN Via Electronic Lodgement Nullagine Gold Project Pictorial Update October 2011 Development Progress Summary - July 2011 to November 2011 Site based construction activities commenced in July By mid-november 65% of the plant site earthworks had been completed at the Project. The works included clearing, top soil stockpiling and cut to fill preparation of the foundations for the elution tanks area, the mill and primary crusher areas. Construction of the process water dam was also completed. Additionally, the site road access upgrade has commenced. By the mid November 2011, the Company had made significant progress in the development of the Project, including: On-site construction of the 140 man accommodation village was well advanced. A total of 72 en-suited rooms were delivered to site and have been installed, fit for occupation. The kitchen complex was also delivered to site and was fully operational 21 October 2011; 70 personnel engaged in earthworks, civil works and leach tank refurbishment. plant site earthworks scheduled for completion in December 2011; plant site concrete work is 23% complete; 25% completion of the access road upgrade; and 85% equipment orders placed Project is on schedule and within the capital budget as of 1 November Ground Floor 17 Ord Street West Perth WA 6005 Australia. PO Box 117 West Perth WA 6872 Australia. T: +61 (0) F: +61 (0) E: info@mmltd.com.au W:

2 Page 2 of 13 Pictorial Update Start of clearing Accommodation village site 27 th July 2011

3 Page 3 of 13 Accommodation village completing site to grade 12 August 2011 Accommodation Village Completion of Stage 1 base facilities for 72 personnel 21 October 2011 Manning levels are currently at about 70 personnel with the earthworks, civil, tank erection and catering contractors currently on site. Meal service commenced 21 October 2011

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5 Page 5 of 13 Process Plant site looking west Construction Process Water Dam

6 Procurement and Material Supply As of mid-november, the Company had committed to the purchase of 85% of the project equipment. Key long lead items committed to include: semi-autogenous grinding (SAG) mill; primary crusher, apron feeder and ancillary items; gravity concentrator; crusher and mill feed conveyor components; screens; carbon regeneration kiln and calcine oven; elution column; elution heater; lime silo; and smelting furnace. The remaining equipment and materials required to complete the construction of the Project will be purchased in the coming quarters as dictated by the construction schedule. CIL Tank base construction Page 6 of 13

7 Coarse Ore Stockpile Reclaim tunnel wings preparation Coarse ore stockpile laying tunnel floor Page 7 of 13

8 SAG Mill Foundations pouring the base Erection existing CIL tanks Page 8 of 13

9 SAG Mill Construction Mill Head completed SAG Mill Shell in manufacture-perth Western Australia Page 9 of 13

10 BACKGROUND - NULLAGINE GOLD PROJECT The Nullagine Gold Project (Figure 1) is a 1.24 million ounce gold resource contained within 7 deposits on granted mining leases (Tables 3 and 4). The largest deposit is Golden Eagle located approximately 10 km south of the township of Nullagine and containing 68% of the total Mineral Resource inventory. Construction commenced in July 2011 with commercial gold production due in the 4th quarter of Figure 5: Nullagine Deposit Location Plan Enquiries: Brian Rear Chief Executive Officer 17 Ord Street West Perth WA 6005 Postal: PO Box 117 West Perth WA 6872 T: F: W: Page 10 of 13

11 Table 3: Nullagine Gold Project Mineral Resource Estimate September 2010 Measured Indicated Inferred Total Deposit Cutoff Mt Grade Mt Grade Mt Grade Mt Grade Ounces Grade g/t Au g/t Au g/t Au g/t Au Au g/t Au Golden Eagle ,600 Shearers ,700 Bartons ,000 All Nations ,000 Golden Gate (ABCD Reef) ,000 Golden Gate Satellites ,000 Otways ,000 Little Wonder ,300 Totals ,241,600 Notes: 1 Figures in Table may not sum due to rounding. 2 The Golden Eagle, Shearers, Otways, Little Wonder and Golden Gate satellite deposits namely Falcon, Harrier, Crow, G-Reef and Condor were estimated using Ordinary Kriging methodology for grade estimation by CSA Global. 3 The Mineral Resources at Bartons, All Nations and Golden Gate (ABCD reef) were estimated using Multiple Indicator Kriging methodology for grade estimation by Hellman and Schofield Pty Ltd. 4 The Golden Gate and Barton deposits are the subject of a mining licence agreement whereby Millennium has the sole and exclusive right to explore and mine gold and other minerals. Millennium then is required to pay 25% of the net proceeds to the tenement owners (Livestock Marketing Pty Ltd, Duncan Thomas Young, Simba Holdings Pty Ltd and Ronald Lane Swinney) after mining and processing cost deductions. Page 11 of 13

12 Qualifying Statement This release may include forward looking statements. These forward looking statements are based on Millennium s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Millennium, which could cause actual results to differ materially from such statements. Millennium makes no undertaking to subsequently update or revise the forward looking statements made in this release, to reflect the circumstances or events after the date of this release. Competent Persons Statements Exploration Results Mr Irvine Hay (MAIG), a geologist employed full-time by Millennium Minerals Limited, compiled the technical aspects of this Report. Mr Hay is a member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to this style of mineralization and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hay consents to the inclusion in the report of the matters in the form and context in which it appears. Competent Persons Statements Mineral Resources The information in this Report, which relates to the Golden Eagle Mineral Resource estimate accurately reflect information prepared by competent persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The Golden Eagle deposit Mineral Resource estimate has been compiled and prepared by Dr Bielin Shi, (MAusIMM) of CSA Global Pty. Ltd. who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this Report, which relates to the Shearers Mineral Resource estimate accurately reflect information prepared by competent persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The Shearers deposit Mineral Resource estimate has been compiled and prepared by Mr. David Williams (MAusIMM, MAIG) of CSA Global Pty. Ltd. who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this Report, which relates to the Otways Mineral Resource estimate accurately reflect information prepared by competent persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The Otways deposit Mineral Resource estimate has been compiled and prepared by Mr. Shane Fieldgate (MAusIMM, MAIG) of CSA Global Pty. Ltd. who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. Page 12 of 13

13 The information in this Report, which relates to the Little Wonder and Golden Gate Satellite Mineral Resource estimates accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The Little Wonder and Golden Gate satellite deposits Mineral Resource estimate has been compiled and prepared by Steven Hodgson, (MAIG) of CSA Global Pty. Ltd. who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this Report, which relates to the Bartons, All Nations and Golden Gate ABCD reef Mineral Resource estimates accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The reported Mineral Resource as it relates to Bartons, All Nations, and Golden Gate ABCD reef has been compiled by Mr Nic Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the Australasian Code for Reporting of Mineral Resources and Ore Reserves of December 2004 ( JORC Code ) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. The Competent Persons listed consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Page 13 of 13