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IRIS Tasmania  >  Companies  >  Major Companies  >  Allegiance Mining

Allegiance Mining NL

Company name

Allegiance Mining NL

Company web site

http://www.allegiance-mining.com.au/

Company annual report

http://www.allegiance-mining.com.au/default.asp?id=22

Location

Company office: 145 Main Street, Zeehan Tasmania 7469.
Avebury deposit: 10 kilometres south-west of Zeehan on the West Coast of Tasmania.

NOTE: For contact details, please access the company website. 

Principle business activities

Allegiance is a junior, public-listed Sydney-based company. Since 1997, they have focused on the exploration, evaluation and development of nickel sulphide deposits in Tasmania. Full-scale underground mining commenced in December 2006, at the end of which 10,300 tonnes of underground development ore had been mined.

Performance

Planned ore production is 0.9 megatonnes per annum but the existing mine can produce 1.5 megatonnes of ore per year should mill throughput rates exceed plan.

Production estimates over the next 8-10 years total approximately 70,000 tonnes of nickel metal contained in concentrates which, at prevailing nickel prices is worth approximately $3.5 billion in gross revenue before smelter charges.  

Future production

Current reserves provide enough ore sufficient for initial production at the rate of 900,000 tonnes per annum until 2011.

Allegiance Mining has made a significant nickel sulphide discovery at Avebury, south-west of Zeehan. Production at the Avebury Nickel project was due to commence in 2008. Avebury nickel ore has simple metallurgy and produces a premium concentrate grading above 20% nickel that will be sold at commensurate premium prices.

The company is also looking at mining nickel at Melba Flats near Zeehan.