Wallbridge Mining (TSE:WM) announced Tuesday that it has received the remainder of the results from its Broken Hammer bulk sample program, with metallurgical recoveries prompting the launch of a pre-feasibility study.
The company delivered more than 30,000 tonnes of ore in July of this year as part of its bulk sample program to partner Xstrata Nickel's Strathcona mill in Sudbury.
Metal recoveries were similar to or better than typical Sudbury Basin copper-Nickel-platinum-palladium-gold footwall-type deposits, Wallbridge said in a statement.
The assay results were provided by XPS Laboratories in Sudbury, Ontario.
The first payment, representing an advance payment for a portion of the payable metal revenue was received and the rest is anticipated to be received in 2012, after the smelting of the concentrate at the Xstrata Nickel smelter in Sudbury, Wallbridge said.
The net smelter return, based on October monthly average prices for different metals, is approximately $4 million, with estimated net proceeds of $2.6 million after mining, milling, refining and treatment charges.
Wallbridge discovered Broken Hammer in an ongoing grass roots exploration program on the North Range of the Sudbury Basin. Based on the positive results of the bulk sample program, Wallbridge commissioned the pre-feasibility and feasibility study of Broken Hammer last month.
The results of the bulk sample campaign, as well as additional drilling since 2005 will be included in a new NI-43-101 compliant resource estimate, which is currently being completed as part of the pre-feasibility study.
Wallbridge currently holds a 98.5 percent interest in Broken Hammer, while Xstrata retains a 1.5 percent carried interest with some buy back provisions.
Wallbridge's primary focus is the exploration for platinum group elements, Nickel and copper deposits in the Sudbury area of Ontario. The company also has a significant shareholding in its spin out company, Duluth Metals, which is advancing its large copper-Nickel-platinum-palladium-gold deposit in northern Minnesota through feasibility in joint venture with Antofagasta plc, one of the world's major copper producers.