April 30, 2012 (Source: Metallica Minerals) —
In January 2012, proceeds of $4.5M were received from the placement of 9 million MetroCoal Ltd (ASX:MTE) shares with DADI in late December 2011.
MLM well positioned with strong cash position of approximately $10.5M (31 March 2012) to continue an active 2012 progressing NORNICO and its Zircon-Rutile HMS projects.
Further strengthening of cash position through the execution of a $5M loan facility agreement on 2 April 2012, after which only $1m has been drawn down (see page 4).
Current listed ASX share investments market value of over $32M (see Table 1).
Appointment of John Khoo to the new position of Corporate Development Manager. Mr. Khoo has considerable experience in investment banking in the resource sector, offering significant transaction experience, strong valuation and financial modelling skills. He will be responsible for day to day corporate development, financial and commercial support for progressing NORNICO and the two zircon-rutile HMS projects.
Scandium recovery technology development advancing with ownership of technology secured and patent process commencing.
NORNICO NI-CO-SC“TRI-METAL” PROJECT – 100% MLM
Major increase in the Lucknow deposit Indicated & Measured Scandium Resource to 7.5 Million tonnes (Mt) @ 156g/t Scandium (Sc) (previously 3.3Mt @ 176g/t Sc) – see Table 6 – includes discrete higher grade scandium Resource of 4.03Mt @ 204g/t Sc – see Table 7.
Boosts NORNICO project scandium resource (Lucknow & Kokomo) to 16.8Mt @ 130g/t Sc containing approximately 3,250t scandium oxide (Sc2O3) includes Indicated and Measured Resource of 12.0Mt @ 145g/t Sc – see Table 9.
Bulk metallurgical samples of Lucknow Sc ore together with Greenvale NiCo-Sc ore were processed through the SGS Lakefield Oretest HPAL pilot metallurgical test plant in Perth and successfully completed. This test program (Stage 1) produced approximately 15,000L of Pregnant Liquor Solution (PLS) rich in extracted Sc ready for Sc recovery testwork in Brisbane (Stage 2).
Stage 2 pilot metallurgical test program designed to recover and produce ~1kg of high purity scandium oxide has commenced at a metallurgical laboratory in Brisbane.
Preparation and management of Scoping Study (35% accuracy) for the development of a 750ktpa Ni-Co-Sc operation was awarded to Engineering firm Jacobs and is actively progressing on all aspects.
Environmental Impact Statement (EIS) and permitting activities progressing Initial Advice Statement (IAS) was lodged with DERM on 4 April.
3,340 hectare Mining Lease Application (MLA) applied for over the Greenvale Nickel Mine and additional areas for infrastructure on 20 April 2012 (see page 8).