Widespread's Asian Minerals announces increased nickel resources

 

New Zealand Exchange Limited
P.O. Box 2959
Wellington

 

23 July 2010

Dear Sir,

Widespread’s Asian Minerals announces further increase in nickel resources   

 

Asian Mineral Resources (“ASN”) is one of Widespread’s largest investments. This 4.3% shareholding (presently held at independent valuation based on our share of net assets) represents 25% of Widespread’s total assets.    

 

ASN made the announcement below in Canada last night concerning a 55% increase in resources in the disseminated nickel orebody. It follows the recent announcement (9 June 2010) concerning a 40% increase in the massive sulphide orebody resources.

 

The two increases combined (39,000 tonnes) represent a material change in the measured and indicated categories of the mine resources. To better illustrate this point, the present in-situ market value of the additional 39,000 tonnes of nickel exceeds USD 750 million.

 

Total measured and indicated resources at Ban Phuc are now 119,200 tonnes with an in-situ market value today of USD 2.35 billion.

 

And, as the disseminated nickel ore can be blended with the massive sulphide ore when processing, the increased resources also benefit the value of the project by increasing the life of the mine.

 

For and on behalf of the Board,

 

Chris D Castle

Wellington 

23 July 2010 

 

TSX-Venture: ASN

120 Adelaide Street West, Suite 2500, Toronto, Ontario M5H 1T1

Email: info@asianminres.com

Asian Mineral Resources Limited announces 55% increase in Ban Phuc disseminated

resources

Toronto, Ontario – July 22, 2010, Asian Mineral Resources Limited (“AMR”) (TSX-V: ASN) announced today

an increase in the disseminated sulphide resources at its Ban Phuc nickel-copper project in north western

Vietnam. The contained nickel in the Measured and Indicated categories has increased to 73,900t Ni in 12.4MT

@ a grade of 0.59% Ni (Table 1), an increase of 55% over the previous figures.

Table 1

Ban Phuc - Disseminated Sulphide Resource Estimate

Using a cut-off of 0.40% nickel

Category Tonnes (000’) Ni % Cu % Nickel (t) Copper (t)

Measured 2,230 0.63 0.08 14,100 1,800

Indicated 10,245 0.58 0.04 59,800 3,900

Measured + Indicated 12,476 0.59 0.05 73,900 5,700

Inferred 7,415 0.56 0.01 41,700 700

The Qualified Person for the new estimate and National Instrument 43-101 compliance is Dr Bielin Shi, Member of

the Australasian Institute of Mining and Metallurgy (MAusIMM), of CSA Global – Perth, Australia. Dr. Shi has

sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to

the activity he is undertaking, to act as a Qualified Person as defined by NI 43-101. Dr Shi consents to the inclusion of

such information in this news release in the form and context in which it appears.

This increase in disseminated resources follows the increase in the massive sulphide resources previously

announced and is the result of a concerted drill program designed to test the integrity and continuity of the

disseminated mineralisation which lies in close proximity to the massive resource (Figure 1 & 2).

Figure 1

Together with the recently announced increase in massive sulphide resources the Ban Phuc project now has a

total of 119,200t of nickel contained in a Measured and Indicated resource of 14.1MT @ 0.84% Ni (Table 2)

Asian Mineral Resources Limited

2

Table 2

Ban Phuc – Total Resource Estimate

Using a cut-off of 0.40% nickel

Category Tonnes (000’) Ni % Cu % Nickel (t) Copper (t)

Measured and Indicated

Massive sulphides 1,691 2.68 1.19 45,328 20,143

Disseminated sulphides 12,476 0.59 0.05 73,900 5,700

Massive + Disseminated 14,167 0.84 0.19 119,238 25,843

Inferred

Massive sulphide 170 1.94 0.81 3,303 1,361

Disseminated sulphides 7,415 0.56 0.01 41,700 700

Massive + Disseminated 7,585 0.59 0.03 45,003 2,061

Within the disseminated resource lies an area of ‘select disseminated’ (Figure 2) which is adjacent to the

massive sulphide and is readily accessible from the underground infrastructure needed to mine the massive

sulphide resource. This zone offers potential for bulk mining methods which could provide supplemental feed

to take advantage of spare capacity in the current Ban Phuc plant design. Preliminary metallurgical test work

has confirmed that Ban Phuc disseminated material can be blended with the massive sulphide and processed

via the existing flowsheet without negatively impacting on recovery or the saleability of the concentrate.

Figure 2 Cross Section 50,000E Showing Massive Sulphide and Disseminated Sulphide Lodes

Asian Mineral Resources Limited

3

Table 3

Ban Phuc - “Select” Disseminated Resource Estimate

Using a cut-off of 0.40% nickel

Category Tonnes (000’) Ni % Cu % Nickel (t) Copper (t)

Measured 1,552 0.62 0.10 10,100 2,100

Indicated 579 0.51 0.02 3,100 100

Measured + Indicated 2,131 0.59 0.08 13,100 2,100

“The definition of the new ‘Select’ disseminated (Table 3) resource in close proximity to the underground

development currently planned that can be treated either concurrently or separately with the massive ore

which opens new possibilities for further value creation and optimization of the underground mine.”

commented Rob Guest, CEO of AMR. “The economics are under review as the wide intersections encountered

offer potential to employ cheaper bulk mining methods and the availability of excess capacity in the process

plant allows the ore to be treated on a marginal basis”.

Company Profile:

Asian Mineral Resources Limited has been active in Vietnam since 1993 and through its 90% owned Vietnam

subsidiary Ban Phuc Nickel Mines LLC is developing the Ban Phuc sulphide deposit in Son La province 5 hours

drive north-west of Hanoi. Construction of the project, which is targeting the production of 60,000tpa of

concentrate containing nickel/copper/cobalt was suspended in October 2008 when metal prices were under

pressure from the world financial crisis. With over 1,000m of underground development and 80% of all plant

equipment purchased, the project is approximately 65% complete and is currently under care & maintenance

pending receipt of funding to complete construction. For further information, please refer to the company

website at www.asianminres.com or contact:

Rob Guest, CEO

#9 Nguyen Hong Street

Ba Dinh District, Hanoi, Viet Nam

T: +84 4 3773 7997

F: +84 4 3773 7996

Email: rguest@banphucnickel.vn

Paula Kember, CFO

120 Adelaide Street West, Suite 2500

Toronto, ON M5H 1T1

T: 416 360 3412

F: 416 367 1954

E: info@asianminres.com

Quality Assurance

The technical information supplied to CSA was reviewed by Simon Mottram, MAusIMM and an AMR employee. Mr. Mottram is a Qualified

Person as defined by National Instrument 43-101. For more detailed information regarding the Ban Phuc massive sulphide deposit please

refer to Technical report (NI 43-101) - English - August 2007, that can be found at www.sedar.com.

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein,

including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and

objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no

assurance that such statements will prove to be accurate and actual results and future events could differ materially from those

anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources

Limited’s expectations are disclosed under the heading "Risk Factors" and elsewhere in Asian Mineral Resources Limited documents filed

from time-to-time with the TSX Venture Exchange and other regulatory authorities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this

news release.

 

 

NTA 55¢

Key stats as at 18 May

Security

Number on issue

Market price (cents)

Market Value ($M)

Net assets ($M)

Ordinary shares

23,490,449

16.0

3.758

12.8*

Market value discount    (ords only)  

 70.7%

 

Listed warrants

8,505,123

0.8

.068

 

* Our ASN shareholding is now held for NTA disclosure purposes at a valuation of CAD 1.914 million based on our share of net assetsNTA per WID share valuing ASN at the current spot market price is 46.8 cents. NTA per share valuing all listed assets at spot market prices is 22.7 cents.

 

 

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