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MEI Online: Plant Operation News: Africa: July 3rd 2006


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:: Project 5 Million at Tati Nickel Completed Ahead of Schedule and Within Budget

LionOre Mining International Ltd. is pleased to announce the successful completion of Project 5 Millionís construction and commissioning phases, within budget and ahead of schedule, at Tati Nickel in Botswana.

Project 5 Million is a low capital cost expansion program designed to increase production from the design capacity of 12,500 to 14,500 tonnes of payable nickel per annum through increasing the Phoenix mineís ore processing capacity from 3.6 million tonnes to 5 million tonnes per annum.

The expansion was designed in association with third party consultants after extensive live testing to reduce project risk. The plant expansion was achieved by making modifications and upgrades to the existing crushing and concentrator circuit to remove bottlenecks. The total capital expenditure was US$19 million, 5% under budget.

The project timetable planned for construction and commissioning to be completed by the end of the second quarter 2006, project ramp-up during the third quarter and implementation over the fourth quarter 2006. The Project is now producing at designed throughput rate and at above planned recoveries. During the third quarter 2006, the mine will continue to optimize the plant and the new circuit to further enhance the throughput rate and metal recoveries. Production for Tati for the first half of this year is still targeted at 5,200 tonnes of payable nickel.

Commenting on the project, Colin Steyn, President and Chief Executive Officer of LionOre said, "Project 5 Million was an important and necessary expansion program for Tati, as it provides the foundation for the planned Activox® and Dense Media Separation projects. It is encouraging that the project was delivered ahead of schedule and under budget."




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