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Annual Report 2015 41
Development
During FY2015, a total of 2,318m was advanced by jumbo development, of which 632m was booked as capital development
and 1,686m as operational. FY2015 capital development is focusing on the development of the Moran South exploration drilling
platform, with drilling to be staged as development progresses.
FY2016 Guidance
Production guidance for the Long Operation for FY2016 is between 8,500 and 9,000 tonnes of contained nickel. Payable cash
costs plus royalties for FY2016 are forecast at $3.50 – $4.00/Ib Ni, net of copper credits.
Exploration at the Long Operation over the next 12 months will continue to test for extensions to existing ore bodies at McLeay
South, Moran South and Long North, and for new deposits in the tenement area. $13 – $15 million is expected for exploration
in FY2016 including expenditure on development for exploration access. Sustaining capital expenditure is forecast to be $3 – $5
million during FY2016.
Near Mine Exploration
A combination of diamond underground and surface drilling totalling 104 drill holes for 20,457 metres was undertaken to explore
Long North, Victor South, McLeay, McLeay South and Moran South nickel targets.
McLeay South
At McLeay South, two surface diamond hole wedges for 3,455m were completed targeting mineralisation up to 80m north of
the previously reported intercept (LNSD-063W2 with 4.9m @5.4% Ni). The best results were reported in the following drill holes:
•
LNSD-065W3 with 1.1m @ 3.53% Ni from 977m (True width 0.8m)
•
LNSD-065W4 with 4.2m @ 4.94% Ni from 1011m (True width 3.5m).
Follow up underground diamond drilling is planned from the McLeay South drill drive.
The McLeay South drill drive commenced in the December 2014 quarter. The drill drive will provide a platform for underground
drilling to better define the McLeay South mineralisation. At 30 June 2015, a total of 405m of development, including three
stockpiles, remain to be completed. The first drilling position is expected to be available in FY2016.
DHem conductor
LONG
McLEAY
VICTOR
SOUTH
MORAN
McLeay
Southern Extension
Target
Moran South
Target
Long North
Target
Targets
Moran East Fault
GOLD FIELDS
ML 15/1515
ROYALTY AREA
0
500
metres
N
Note: Widths quoted are down-hole widths.
Significant drill hole intercepts
(drill intercepts are quoted as down hole width,
not true width)
MDU-710 - 4.7m @ 5.2% Ni
MDU-718 - 1.9m @ 6.4% Ni
MDU-724 - 3.6m @ 2.9% Ni
MDU-726 - 3.9m @ 7.6% Ni
LSU-510
0.6m @ 10.7% Ni
Figure 12: Long Operation – Longitudinal Projection showing target areas, TEM conductors and significant intercepts
Note: See June 2015 Quarterly Report released to ASX on 29 July 2015