Victory West Moly Limited (ASX:VWM) Significant Upside Identified Through Re-evaluation of Existing Data at USSU Nickel Project
Victory West Moly Limited (ASX:VWM) Significant Upside Identified Through Re-evaluation of Existing Data at USSU Nickel Project

Perth, Nov 25, 2010 AEST (ABN Newswire) - Victory West Moly Limited (googlechartASX:VWM) (FSE:R1E) the SE-Asia focused metals explorer, has announced a significantly refined exploration target size for the nickel laterite mineralization at its USSU Nickel Project in Indonesia.

Data re-evaluation has resulted in a significantly refined exploration target size of:

- 25-30Mt @ 1.70-1.90% Nickel with 0.03% Cobalt and 16.2% Fe in Saprolite and

- 15-20Mt @ 1.10-1.30% Nickel with 0.05% Cobalt and 29.6% Fe in Limonite.

VWM Chief Executive Officer Rob Hyndes said the data re-evaluation has demonstrated that the project offers great potential for value adding options to be explored over and above its known DSO potential.

"We are excited at the conceptual project economics, and the opportunities this project presents to deliver long-term value to our shareholders," he said.

Rohan Erwin, VWM?s Project Director, is leading the Company exploration program on the ground in Indonesia. Mr Erwin has an outstanding track record in the identification, exploration and development of greenfield mining projects in Australia, Indonesia and South America.

"We will have sufficient drilling done by year end to deliver a maiden, inferred resource early in 2011, targeting early commercialisation through direct shipping the high-grade nickel saprolite," Mr Erwin said.

"Importantly the exploration work undertaken to date covers less than 40% of the project concession area. The remaining undrilled areas of the concession are considered to also have considerable prospectivity providing the possibility of significantly increasing the area from the currently defined exploration target* areas."

The USSU Project is in a prolific laterite nickel province with several major operations or projects nearby, including Rio Tinto's (googlechartASX:RIO) 162Mt Sulawesi Nickel Project and PT Inco's 161Mt Sorowako mine.

Feasibility and Environmental Studies are in progress for Production and Operational IUP concession applications.

Mr Hyndes said the market for DSO nickel ore was robust, with continued strong nickel demand from key Asian markets.

A detailed geological overview of the USSU Project is outlined below (see link at the bottom).

Background

As announced on 12 November 2010, subject to shareholder approval VWM is
proceeding with the acquisition the 70% equity interest in the highly prospective USSU Project.

The Company is preparing the required documentation for the Notice of Meeting and the proposed date of the meeting will be announced in due course.

For the complete Victory West Moly Limited announcement including figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64272-ASX-VWM-517051.pdf

Contact

Robert Hyndes
Chief Executive Officer
Victory West Moly Limited
Tel: +61-8-9381-5819
Fax: +61-8-9388-3701
http://www.victorywestmoly.com.au



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