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Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	EMU
Latest Price:	0.13 (0.00%)
52-week High:	0.27
52-week Low:	0.13
Market Cap:	7.48M

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Emu Nickel

Emu Nickel (ASX: EMU) is a nickel focused explorer with a portfolio of projects in Western Australia ranging from grassroots to advanced nickel sulphide projects.

Emu Nickel to acquire near production ready gold and antimony mine in New South Wales

Wednesday, February 08, 2012 by Angela Kean

Emu Nickel (ASX: EMU) has secured the rights to acquire the Hillgrove Gold and Antimony Mine in New South Wales, one of the largest Antimony projects ready to go into production by 2013.

Hillgrove has sufficient reserves to support a nine year mine life with additional resources to extend that mine life by another seven years.

The project has a Resource of 6.3 million tonnes at 1.6% antimony and 4.3 grams per tonne (g/t) gold for 101,000 tonnes of antimony and 870,000 ounces of gold.

Reserves comprise 2.2 million tonnes at 2.1% antimony and 3.8g/t gold for 46,000 tonnes of antimony and 270,000 ounces of gold.

Mine recommissioning is scheduled for the June quarter of 2013 with a projected steady state production targeted for the December quarter of 2013.

Earnings before interest, taxes, depreciation and amortisation are projected to be around A$40 million for the December quarter of 2014.

Hillgrove has a base case annual production of 4,500 tonnes of antimony and 25,000 ounces of gold in concentrate.

Importantly, 50,000 tonnes of ore is already on the run of mine pad ready for commissioning and Emu will have immediate access to sufficient underground ore for the first 18 months of production.

The Hillgrove project, which covers 425 square kilometres, is located about 25 kilometres east of Armidale, a major regional town in New South Wales.

The historic Hillgrove mineral field has a rich history having produced 49,000 tonnes of antimony and 720,000 ounces of gold.

Emu has allocated $4 million per annum to undertake near mine and regional exploration.

Recent drilling at Bayley Park and Conningdale has located new areas of mineralisation.

Highlights from Bayley Park include 1.9 metres at 7.6% antimony and 1.5g/t gold from 39.5 metres, while drilling at Conningdale intersected 37 metres at 0.23g/t gold and 4.2g/t silver from 35.8 metres.

Hillgrove Acquisition

Emu has agreed to acquire ANCOA NL by issuing shares in Emu in two tranches. Upon completion of the acquisition Emu will change its name to ANCOA and purchase the Hillgrove mine for $40 million.

The company will settle the mine acquisition with $10 million in cash and the remaining $30 million through a combination of cash, shares or convertible notes.

Emu plans to undertake a $60 million capital raising to secure sufficient funds to proceed with the acquisition.

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