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Knight Resources Hits Radar With Quebec Nickel Discovery By Jon A. Nones 25 Jul 2007 at 03:39 PM GMT-04:00 St. LOUIS (ResourceInvestor.com) -- Knight Resources [TSX-V:KNP] shares jumped 18% as investors celebrated drill results from the first 2007 hole at its 49%-owned West Raglan Project in Quebec, Canada. With highlights showing intersections of 28.65 metres of 1.06% nickel and 5.90 metres of 2.98% nickel, further upside could be on the horizon for this unknown junior. Upon the news, shares in KNP jumped 9 cents to 59 cents today on the Toronto Stock Exchange Venture. KNP has gained 300% since March alone. And with only about 80 million shares outstanding, the company still has a relatively small market cap of just C$47.2 million. As stated above, the company reported drill results from its Frontier South target, revealing 28.65 metres grading 1.06% nickel, 0.36% copper, 0.24 g/t platinum, 0.96 g/t palladium from 157.60 to 186.25 metres. The second intersection showed 5.90 metres grading 2.98% nickel, 0.68% copper, 0.41 g/t platinum and 1.6 g/t palladium from 217.20 to 223.10 metres, which included 3.10 metres of 4.96% nickel, 0.52% copper, 0.63 g/t platinum and 2.58 g/t palladium. So at current market prices, the first intersection is worth about $392.04/tonne, while the second intersection would come to $1,675.73/tonne minus operating cash costs. With nickel prices currently at $14.43/lb, the company expects to make a substantial profit down the road. According to the release, two rigs are currently operating on the West Raglan Project as part of an 8,000 metre diamond drill program. Additional assays from the 2007 program are expected in the coming weeks. The West Raglan Project is a joint venture between Anglo American Exploration (Canada) Ltd. (AAEC) [Nasdaq:AAUK] (51%) and Knight Resources (49%). The exploration area covers over 720 square kilometres and includes approximately 65 kilometres of the Raglan Horizon, known for extensive ultramafic rocks. In 2002, AAEC confirmed the existence of 65 kilometres of strike length of the Raglan Formation and 65 kilometres of strike length of the Delta Horizon on the West Raglan Project. In 2006, the company spent about C$3.2 million on a total of 4,303 metres of BQ diamond drilling, which included 20 new holes, 1 deepened hole from 2004 and 1 metallurgical hole. The program focused on Century, Frontier South, Frontier Central and the BT Zone, all within the Greater Frontier area. Highlights at Century revealed one intersection of 17.85 metres grading 1.30% nickel, 0.70% copper, 271 parts per billion (ppb) platinum and 1031 ppb palladium, including 5.25 metres of 2.58% nickel, 1.38% copper, 490 ppb platinum and 1890 ppb palladium. Frontier South highlights included one hole intersecting 9.85 metres of 0.90% nickel, 0.27% copper, 257 ppb platinum, 1031 ppb palladium from 161.65 to 171.50 metres, including 3.50 metres of 1.73% nickel, 0.48% copper, 539 ppb platinum and 2241 ppb palladium. Frontier Central showed one intersection for 0.30 metres of 2.06% nickel, 0.36% copper, 276 ppb platinum and 1205 ppb palladium from 29.20 to 29.50 metres. The 2007 drill program is focused on the Frontier Area which is characterized by numerous mineralized ultramafic intrusions that occur over a 6 kilometre strike length along the Raglan Horizon. The 8,000 metre drill program is expected to cost approximately C$4.5 million. According to the company, the mineralization of the Frontier Area occurs in a geological setting typical of that observed at Falconbridge's (now Xstrata’s [LSE:XTA]) Raglan Mine, located 90 kilometres east of the eastern margin of the West Raglan Project. Reserves total about 15.65 million tonnes of nickel grading 2.82%, with Indicated and Inferred resources of 16.8 million tonnes at about 0.89% nickel. The deposit also has significant platinum group elements and cobalt, much like West Raglan. Production figures from 2004, the latest statistics on the company’s website, show 26,552 tonnes of nickel, 6,867 tonnes of copper and 404 tonnes of cobalt at an operating cash cost of about $2.57/lb. In 2004, the nickel price averaged only around $6/lb, less than half today’s prices. At current nickel prices, even with a possible operating cost of $5.00/lb, West Raglan could be set to outperform if the Raglan Mine is any example. But patience is key with at least 5-10 years of development work ahead prior to production. |
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| aus der Diskussion: | Knight Metals ehem. Knight Resources - Gute Bohrergebnisse |
| Autor (Datum des Eintrages): | e_type1 (26.07.07 08:08:36) |
| Beitrag: | 4,608 von 12,282 (ID:30853311) |
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