Name of the Project
Sconi scandium/cobalt/nickel project – Phase 1.

Location
The project is located 250 km west of Townsville, in Queensland, Australia.

Client
Metallica Minerals.

Australian Mines can earn a 75% interest in the project. The first 50% interest will be subject to the completion of a definitive feasibility study (DFS), or a A$10-million spend within a four-year period, with a further 25% to be acquired after Australian Mines arranges suitable finance or the development of the project within 18 months of completing the Stage 1 earn-in.

Project Description
The Sconi project encompasses two scandium/cobalt-rich, and three nickel/cobalt deposits.

The total scandium resource at Sconi is 12-million tonnes, at 162 parts per million of scandium for 2 989 t of scandium oxide.

The combined nickel and cobalt mineral resource for the project is 89-million tonnes at 0.58% nickel and 0.06 % cobalt for 514 000 t of contained nickel metal and 54 000 t of contained cobalt metal.

A prefeasibility study on the Sconi project has confirmed that it could potentially produce an estimated 5 250 t/y of nickel, 700 t/y of cobalt and 68 t/y of scandium for at least the next 20 years.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
Australian Mines has raised A$20-million to fund work at its Sconi project.

The company approached a number of institutional fund managers regarding a possible raise, and received applications for nearly A$40-million of what was initially intended to be a A$10-million placement.

Australian Mines has said that the willingness of global funds to invest in the company is considered a strong endorsement of the quality of the Sconi project, the development strategy being pursued at the assets and the strength of its management team.

The funds raised will go towards continuing trial mining at the Sconi project and completing a bankable feasibility study (BFS) by the end of April 2018. A final investment decision is expected following the BFS.

Trial mining at Sconi started in September this year, with 20 t of bulk sample material successfully mined. The bulk ore sample is expected to produce about 160 kg of nickel sulphate, 20 kg of cobalt sulphate and 5 kg of high-purity scandium oxide.

Funding will also be used to accelerate resource expansion drilling at the Femington cobalt/scandium/nickel project, in New South Wales.

In September, Australian Mines took 100% ownership of Sconi after striking a A$10-million cash-and-share deal with Metallica Minerals, negating an earlier earn-in agreement under which it would have earned a 75% interest.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metallica Minerals, tel +61 7 3249 3000 or fax +61 7 3249 3001.
Australian Mines, tel +61 8 9481 5811 or email office@australianmines.com.au.