Sally Malay Mining Limited (SMY) –Heading with Deacon and Sally Malay to >20,000tpa Ni within 2 years (by 2009)

• Sally Malay has made significant discoveries at both its namesake operation in the Kimberleys of northern WA with the potential Northern orebody, and the probably >60,000t Ni Deacon orebody at Lanfranchi, south of Kambalda.
• The company-making Deacon alone enables Lanfranchi to attain expected production rates of 350,000tpa, which when added to Winner and a deeper more consistent Lanfranchi orebody, could result in the Lanfranchi mine producing ~15,000tpa Ni from 2009, of which SMY’s 75% would be an attrib ~11,000tpa Ni.
• The recent discovery of the potential Northern orebody in May/June 2007 at the western end of Sally Malay could result in the mine to achieving throughput rates of ~0.8mtpa to 0.9mtpa in its own right and production of ~10,000tpa to 12,000tpaNi, without Copernicus. Add SMY’s 60% of Copernicus and production ~11,000tpa to 13,000tpaNi may be achievable.
• The intersection of Ni mineralisation in the Sally Malay decline, resulted in the discovery of the possible Northern orebody with an intersection of ~18m @ 2%Ni and realisation that the Turkey Gabbro dips ~60ºNorth (not vertically), increasingly exposing the Sally Malay intrusion with depth. Further fan-drilling (assays pending) has exposed new mineralisation as potential additional ore sources.
• There is also significant exploration upside potential at Lanfranchi, ranging from more continuous Lanfranchi orebody mineralisation (based on EM infilling), Deacon/Helmut having joined, extending deeper & possibly even meeting Schmitz. Plus the initial disseminated nickel encouragement from the Northern dome.