Diamond Fields International has provided results from its initial reconnaissance sampling of the Valozoro lateritic nickel deposit located 60 kilometres north of the town of Fianarantsoa in south-central Madagascar. Results confirm the presence of a high-grade nickel deposit at the Valozoro site. The reconnaissance sampling collected one-metre chip and channel samples through the lateritic profile by revisiting 18 of more than 454 pits excavated on the property during 1956 and 1957. In addition, mineralization was sampled in road cuts and hillside exposures, and 170 of the old pits were located and logged for depth.
Although some pits reach a depth of 17.5 metres, equipment constraints restricted sampling to pits with a maximum depth of eight metres, and confined sampling results mainly to the upper 6.6 metres of lower-grade material. Sampling returned grades between 0.61 per cent and 1.77 per cent nickel over thicknesses of four to six metres in 10 of the 18 pits sampled in this upper horizon. Improved grades were seen where sampling reached the serpentinised lower part of the deposit, with intervals between 3.5 per cent and 5.9 per cent nickel in three pits. Samples were processed at the Anglo American Research Lab in Johannesburg.
Grab and chip samples collected in road cuts and slump exposures of the laterite horizon returned values as high as 8.56 per cent nickel from the argillaceous serpentine of the exposed lower horizon.
In November, 2003, Diamond Fields negotiated the exclusive right to acquire a 100-per-cent interest in the Valozoro property, on which UGINE, in the 1950s, reported a resource of 3.7 million tonnes grading 1.75 per cent nickel for 65,000 tonnes of contained nickel. This is an historical resource estimate which does not comply with National Instrument 43-101 standards of disclosure. Diamond Fields’ exploration plans include a continuation of the sampling to build a more accurate and complete picture of nickel grade and tonnage, as well as prospecting the vicinity for additional mineralization. Diamond Fields development plans for this deposit include assessment of the costs to mine and ship concentrate from the site to in-country mills or offshore processors.
Randal Cullen, chief geologist for Diamond Fields International, is a qualified person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamond Fields.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
