:: Allegiance Breaks Off Renison Processing Talks

ALLEGIANCE Mining has terminated discussions with Murchision United about milling ore from its Avebury nickel deposit in Tasmania through Murchison's Renison plant.

Allegiance chairman Tony Howland-Rose said the parties had been unable to agree terms, but he remained hopeful Renison could yet process ore from Avebury. The 750,000t per annum Renison mill is currently on care and maintenance, as is the much larger Hellyer plant owned by Western Metals, currently in administration.

Howland-Rose told MiningNews.net that using one of these two mills remained his preferred option. However, the company is also looking at construction of a dedicated processing plant capable of treating 400,000tpa.