Australian Mines (AUZ)

Shares / Stock Code

AUZ

Stock Exchange / Sharemarket

Australian Securities Exchange

Australian Mines (AUZ) is involved in the business of exploration for nickel and gold. It was listed on 28 September 2001. AUZ owns 100% of the Blair Nickel Mine, just 35km south of Kalgoorlie in WA. AUZ does not have a treatment facility and ore is sold to WMC. Blair is a relatively low-grade underground mine but is capable of generating a very strong cash flow when the price of Ni is high and mine development costs low. Subject to feasibility, the Marriott’s Nickel Project will be AUZ’s second mine. Payable Ni produced in 3Q08 was 239t. The operating cost, including development, was $12.58/lb for 3Q08.

AUZ's key project is the Blair nickel sulphide mine located in the heart of Western Australia's main nickel sulphide province, Kambalda. The mine produces approximately 1,400t of contained nickel per annum and, since being opened by WMC in 1989, has produced in excess of 35,000t of nickel. Moreover, Major competitors include exploration and mining companies throughout Australia and overseas. Potential customers include the industrial sector, companies in the production of ship propellers, kitchen supplies, chemical industry plumbing, armor plates and burglar-proof vaults.

Australian Mines History

AUZ has done well to establish a cash flow from Blair to help fund exploration and grow the business. Discovery of massive sulphide ore at Area 57, a parallel structure to Blair, is typical of the Kambalda style and bodes well at current prices. The purchase of the Marriott’s Nickel Project from BHP Billiton gives AUZ a shallow resource amenable to open-pit mining. Drilling results from Marriott’s support an increase in the 0.55Mt resource grading 1.4% Ni; this should be a good project.

Australian Mines (AUZ) Products and Services

  • Exploration for nickel and gold

Australian Mines (AUZ) Locations and Subsidiaries

Australian Mines Head Office
681 Murray Street, Level 1,
WEST PERTH
Phone: (08) 9481 5811
Fax: (08) 9481 5611

Australian Mines (AUZ) Share Price

Submitted by ASX Listed Company on 27 February, 2010 - 22:49

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