Significant New Finds By W.M.C.

Press, Volume CVIII, Issue 31669, 3 May 1968, Page 15

Significant New Finds By W.M.C.

(N.Z. Preu Association—Copyright) MELBOURNE, May 2. Western Minint Corporation, Ltd, announced that it had made new nickel strikes in three areas round Kambalda in Western Australia and indicated that there would be a very substantial addition to the company’s ore reserves.

The latest values range up to 11.07 per cent nickel over 14.6 ft. Others inelude 5.34 per cent over 32ft and 817 per cent over 14ft The value* announced last year ranged from 1.03 to 6.17 per cent, and came from greater depths than the latest values. The strikes were in the Otter and Durkin shoots at Kambalda North and at the Kambalda West field. Strikes have been announced at the three location* before, but the latest finds in th* Otter shoot and at Kambalda West appear to be particularly significant Wide Interval The Otter shoot find is over a relatively wide interval, while Kambalda West drilling appears to have uncovered more shoots than were previously known to exist Directors said last evening that there appeared to be four separate ore positions at Kambalda West

Previous reports by the company on the Kambalda West area have referred only to the Fisher shoot but the managing director (Mr W. M. Morgan) said that there now appeared to be four shoots. The positions would be progressively investigated by close pattern drilling. Three month* ago the eom-

pany reported reserves of 9.3 m tons with an average grade of 3B per cent on its Kambalda and St Ives leases. This figure did not Include ore from Kambalda West or the Otter shoot Mr Morgan said Kambalda West would not affect the company in the short term. Western Mining was building reserves and could not expedite the first stage of development which would lift output from the Durkin and Lunnon shoots to an annual rate of 800,000 tons In 1970. But long term, the drill results encouraged the ide* that production would be lifted, be said. Directors said the Kambalda West area appeared to bo folded into a complex pattern with variable and often steep dips, so that at this stage the true widths of the lodes could not be assessed. The true width of a lode refers to the width at right angles to its face, and cannot be established until the angle at which the ore body is lying is established.

Western Mining shares were markedly underpriced, the “Sun" said in a comment on the company’s announcement. George Welham, the finan-

cial writer, said analysts who plotted price movements on chart* would say the share* were set for 130* straight away. “In spite of their big rise Western Mining are capitalised at less than £4oom—something which is not generally realised," Welham said. “After talking to the expert* in London, Canada and elsewhere yesterday I feel they are markedly underpriced.” Big Stride The mining editor of the “Financial Times," Leslie Parker, said the mine had now taken another big stride towards becoming one of the world's richest nickel deposits. Parker said the importance of the drilling announcement quite apart from the weightiness of the figures themselves was officially emphasised by the statement that because of their particular significance the result* were being issued ahead of a routine quarterly report which is due within the next few day*. Hamersley Has Problem (N.Z. Preu Awn.— PERTH, May 2. Hamersley Iron is having some early mechanical trouble* with its new s3om pelletising plant at Dampier, 850 mile* north of Perth, according to a Company spokesman.

It was partially shut down early this month for more than a week, and a team of experts from Dravo Proprietary, Ltd. the manufacturer, I* still working on the plant. It is working but not at its full capacity. DIVIDENDS U. 1.5. Industrial, Lt*. Auckland.—Agnus! 11 por cent dividend payable Jqly U ex Juno N.Z. Motor aedlSs, Ltd, Fatone.—Final 4) per cent payable Jun* 24, ex Jun* 2*. Total, II per eent. (Steady.) Christchurch Bulldln* and Land Society (Fermeneht).—lnterim * per eent en A shares. UNIT TRUSTS

1st Dominion ,.”S •ell Ind Dominion ... .. SI Iff N.Z. Unit .. ,.. «s •9 N.Z. Incom. .. 44 u N.Z. Acum. .* ». u See. First Investors .. M *s .. 47 •1