Blackstone Minerals Limited ('Blackstone' or the 'Company') is pleased to provide results from the final infill drill program at the Ban Phuc DSS deposit at its Ta Khoa Nickel - CopperPGE Project in Northern Vietnam.
The Ban Phuc DSS deposit will underpin the Upstream Business Unit (UBU) PFS due later this calendar year
Successful completion of the final infill drilling program is aimed at increasing the confidence of the existing JORC resource: Indicated Mineral Resource of 44.3Mt @ 0.52% Ni for 229kt Ni and Inferred Mineral Resource of 14.3Mt @0.35% Ni for 50Kt Ni (refer ASX announcement 18 October 2020)
The Company will assess mining scenarios as part of the UBU PFS. Results from the final infill drilling program bode well for the potential to increase mining inventory at Ban Phuc, as compared to the Company's Scoping Study (refer ASX announcement 18 October 2020).
Blackstone Minerals' Managing Director Scott Williamson commented: 'The high tenor of results from the final infill drilling program increases the confidence of the resource at Ban Phuc, and the mine plan that will underpin Blackstone's UBU PFS. In the relatively short amount of time since acquiring the Ta Khoa Nickel - Copper - PGE Project, Blackstone has been able to define a large, disseminated sulfide deposit which considerably adds to the security of supply for the Company's vertically integrated downstream refinery.'
Ban Phuc
Results from the final infill drilling program at the Ban Phuc deposit will be incorporated into an updated resource estimate and form the basis of an updated mine plan to be included in the upcoming UBU PFS
Contact:
Tel: +61 8 9425 5217
Email: scott@blackstoneminerals.com.au
About Blackstone
Blackstone Minerals Ltd (ASX: BSX / OTCQX: BLSTF / FRA: B9S) is focused on building an integrated upstream and downstream battery metals processing business in Vietnam that produces Nickel: Cobalt: Manganese (NCM) Precursor products for Asia's growing Lithium-ion battery industry
The Company owns a 90% interest in the Ta Khoa Nickel-Copper-PGE Project. The Ta Khoa Project is located 160km west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian standards which is currently under care and maintenance. The Ban Phuc nickel mine successfully operated as a mechanised underground nickel mine from 2013 to 2016. In October 2020, the Company completed a Scoping Study which investigated mining the Ban Phuc Disseminated nickel sulfide ore body (upstream) and the construction of a 200ktpa downstream refinery (refer to ASX announcement of 14 October 2020, including for the full details of the Company's Mineral Resource Estimate at Ban Phuc). Building on the outcomes of the Scoping Study, the Company has since completed a technically and economically robust Pre-feasibility Study for its Downstream Business Unit (DBU) which sees expanded downstream capacity. This is based on the Ta Khoa refinery being designed to process 400ktpa of nickel concentrate, supplied from the Ta Khoa Nickel - Cu - PGE mine as well as third party concentrate. The Company is continuing to advance a PFS for the UBU. The UBU PFS will contemplate the option to mine several higher-grade massive sulfide vein (MSV) deposits, which has the potential to reduce initial upfront capital requirements for the UBU by enabling the Company to restart the existing Ban Phuc Concentrator (450ktpa).
By combining the Company's existing mineral inventory (Ban Phuc Disseminated Sulfide - DSS), exploration potential presented by high priority targets such as Ban Chang, King Snake, and Ta Cuong, and the ability to source third party concentrate, Blackstone will be able to increase the scale of its downstream business to cater to the rising demand for downstream nickel products.
Forward Looking Statements
This report contains certain forward-looking statements. The words 'expect', 'forecast', 'should', 'projected', 'could', 'may', 'predict', 'plan', 'will' and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings, cash flow costs and financial position and performance are also forward-looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results or trends to differ materially.
These variations, if materially adverse, may affect the timing or the feasibility of the development of the Ta Khoa Nickel Project. The project development schedule assumes the completion for the Downstream Business Unit of a Definitive Feasibility Study (DFS) by mid-2022. A PFS & DFS for the Upstream Business Unit is assumed to be completed in 2021 and 2022 respectively. Development approvals and investment permits will be sought from the relevant Vietnamese authorities concurrent to studies being completed. Delays in any one of these key activities could result in a delay to the commencement of construction (planned for early 2023). This could lead on to a delay to first production, currently planned for 2024. It is expected that the Company's stakeholder and community engagement programs will reduce the risk of project delays. Please note these dates are indicative only.
The JORC-compliant Mineral Resource estimate forms the basis for the Scoping Study in the market announcement dated 14 October 2020. Over the life of mine considered in the Scoping Study, 83% of the processed Mineral Resource originates from Indicated Mineral Resources and 17% from Inferred Mineral Resources; 76% of the processed Mineral Resource during the payback period will be from Indicated Mineral Resources. The viability of the development scenario envisaged in the Scoping Study therefore does not depend on Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The Inferred Mineral Resources are not the determining factors in project viability. Please refer to the Cautionary Statement in the Scoping Study market announcement dated 14 October 2020.
BLACKSTONE MINERALS LIMITED 
