Breakaway resources enhanced at Eloise

Breakaway Resources, the Australian nickel and base metal company, has reported that it has established a significant strengthening in the resource position of the Eloise mine in north east Queensland.

The mine has a new JORC Compliant resource of 2.1 million tonnes @ 2.9% copper, 0.7 parts per million gold and 8.5 ppm silver.

Production at Eloise is expected to start before the end of 2007, and ore block from the upper portion of the Eloise Deeps should provide improvements in operating and production costs.

FMR Investments Pty Ltd, the mine operator and owner, has advised Breakaway that production royalties could resume during 2008.

Between September 2005 and early 2007, Breakaway received $US12.63 million in earnings under a 30% net profit-based royalty agreement.

However, these earnings largely ceased when the focus turned to further development and underground exploration of the mine, which is adjacent to some of Breakaway’s Queensland base metal prospects.

Breakaway also has prospects in Western Australia, where the company’s prime focus is nickel.

These include the Wildara-Mt Clifford belt, north of Kalgoorlie, and the Miranda Nickel
exploration project, where it holds the nickel rights while Gold Fields Australia holds the gold rights.

Finally, Breakaway holds a 60% share in a joint venture with Thundelarra Exploration, for precious metals prospects at the East Kimberleys.