Victory West Begins USSU Nickel Project Development

1 March 2011 (Last Updated March 1st, 2011 18:30)

Victory West Moly has begun construction and development activities at the USSU nickel project in Indonesia. Work on the project includes clearing and commencement of earthworks for the initial mining, stockpile and port areas, port haul road and mine roads. The USSU nickel

Victory West Moly has begun construction and development activities at the USSU nickel project in Indonesia.

Work on the project includes clearing and commencement of earthworks for the initial mining, stockpile and port areas, port haul road and mine roads.

The USSU nickel project covers about 1,608ha in Malili East Luwu in South Sulawesi, located within a prolific nickel laterite province.

The project has high prospective of nickel with an initial exploration target of 40Mt-50Mt at 1.50%-1.60% Nickel across both Limonite and Saprolite horizons.

The firm has extended the current drill programme to include tight spaced drilling, nominally 25m × 25m in higher grade areas that will define the initial mining areas for the direct shipping ore (DSO) operation.

The first iron ore for shipment from the project is expected to be produced by the end of 2011, according to the firm.

Currently, the project is held by PT Primara Utama Lestari (PT PUL), and Victory West is in the process of acquiring 70% equity interest in PT PUL.