$1,040,000 AUD in Proceeds from March Nickel Deliveries; Production Ramp Up on Schedule - Lanfranchi Mine, Tramways Tenements, Kambalda District, Western Australia
April 24, 2006
Vancouver, B.C. - April 24, 2006 - Brilliant Mining Corp. (BMC:TSXV) ("Brilliant") is pleased to announce that the production ramp up is on schedule at the Lanfranchi Nickel Mine in the world-class Kambalda district of Western Australia. Brilliant is in the process of acquiring Donegal Resources Pty. Ltd. ("Donegal"), a private Australian mining company, which holds a 25% stake in the Tramways Tenements which is host to the producing Lanfranchi Nickel Mine. The Lanfranchi Mine achieved increased production in March to 15,461 tonnes of nickel metal as delivered to the BHP Billiton Concentrator. The proceeds received for the March deliveries totaled $1,040,000 AUD for the 25% share. Brilliant will continue to receive nickel and copper sales revenues from the Lanfranchi mine via a long-term Ore Tolling and Concentrate Purchase Agreement with BHP Billiton.
"The receipt of proceeds from the March deliveries of ore from the Lanfranchi Nickel Mine represents a landmark for our company. Upon conclusion of the acquisition of Donegal, Brilliant will be in an ideal position to take full advantage of the current high Nickel and Copper prices", states Brilliant Chairman John Robins.
The first ore was delivered from the newly developed high-grade Helmut South ore body in September 2005 with production ‘ramp up' currently on track to attain target levels. Along with the increase in production from Helmut South, the Lanfranchi JV composed of Donegal 25% and Sally Malay Mining Ltd. (SMY:ASX) 75%, has commenced work on a detailed mine plan, optimum mining method and costing studies to potentially access ore from two additional deposits. The proposed ore material sourced from the Winner ore body and Schmitz Extension resource if developed could see nickel production levels from the Lanfranchi Nickel Mine increase significantly from as early as the second half 2006 onwards.
The Winner reserve is up plunge from the high-grade Schmitz (783,562 tonnes at 4.56%) and Skinner (297,781 tonnes at 4.87%) ore bodies that produced a combined total of 50,280 tonnes of Ni. Additional stope definition drilling on the currently delineated ore reserve is planned to take place as soon as a suitable rig can be secured. As the ore body is close to the surface, several geotechnical holes will also be drilled to test for a possible portal location, which could enable quicker access to the ore body than from inclining up from the Schmitz decline. This could provide a means of early production from Winner should the drilling, technical and financial studies prove positive.
Recent drilling on the down dip extension of the Schmitz ore body indicates a continuation of high grade nickel 330 metres down-plunge of the lowermost production level (see the Company's press release dated March 30, 06). The reserves and mine plan are currently being established for the Schmitz Extension with a view to having a detailed mine plan and financial model prepared by mid year. If the study is positive as expected and the joint Venture agrees to develop the Schmitz extension, it could be in production during the next financial year. Access to the Schmitz Extension will be via the continued development of the existing Schmitz decline.
The project is supervised by John Williamson, PGeol, of Edmonton, Alta., chief executive officer and a director of Brilliant, and is the qualified person as defined in National Instrument 43-101.
Brilliant Mining Corp. (BMC: TSXV) is focused on the identification, exploration and development of nickel opportunities world wide. The Company currently has 3 active nickel projects in Canada, including the Michikamau property in central Labrador, and is in the process of acquiring Donegal Resources Pty. Ltd., a private Australian mining company, which holds a 25% interest in the Tramways Tenements Project in Western Australia, host to the producing Lanfranchi Nickel Mine. While the Company has every confidence in the successful conclusion of the acquisition of Donegal, there is no guarantee that the transaction will close.
On behalf of the Board of Directors
"Mike Sieb"
Mike Sieb, B.Sc., MBA
President
Brilliant Mining Corporation
For further information about Brilliant Mining Corporation, or this news release, please visit our website at www.brilliantmining.com, or call Mike Sieb, President, at 604.331.2263.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, including management's assessment of Brilliant's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Brilliant's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Brilliant expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.