Sechol -A Major New Nickel-Cobalt Province in Guatemala

The Sechol Nickel-Cobalt Laterite Project is located in East-Central Guatemala, 140 km northeast from Guatemala City. In-situ resources in the immediate Sechol area, including those on other mining concessions contain 133 million tonnes of mineralization, grading 1.5 1% nickel. Considering the ever-increasing market for these metals, and the potential quick return on the initial investment, Jaguar Nickel Inc. is confident that by late 2006, it will be producing the first nickeltcobalt hydroxides from Guatemala. The path from now until the production stage passes through a pre-feasibility study, scheduled for completion by mid 2004, and bankable feasibility by mid 2005. Jaguar's objective, however, is not only to have a producing nickel-cobalt mine by late 2006, but also to continue with the exploration work in order to make Guatemala one of the world's leading nickel-cobalt producers. The Sechol group of deposits is conformed of several lateritic pockets, delimited by tectonic faults, and hosted by ultramafic rocks of the Sierra de Santa CW. ophiolitic belt that intruded the Maya Continental Block during the Early Tertiary age. The intrusive is mainly represented by a layered sequence of dunites, peridotites, and pyroxenites, usually strongly serpentinized. Existing data indicate that these rocks underwent fractional crystallization, and probably some degree of magma mixing and contamination previous to their main tectonic event. The most complete profiles are usually present over weathered dunites and serpentinites, while on top of the less altered pyroxenites, there is usually the formation of only a limonitic zone. The relative complexity of the ophiolitic belt explains the variety of mineral resources in the area, which include Ni-Co-Fe laterite, chromite, bauxite, magnesia, and also has the potential for gold, PGMs, and precious and semi-precious stones such as jade, nephrite, and chrysoprase. Metal recovery from the Sechol deposit will be based on an atmospheric chloride process, followed by solution purification, production of an intermediate nickellcobalt hydroxide suitable for sale, and finally acid and magnesia recovery by standard spray roasting technology. The chloride process will allow exploitation of the whole lateritic profile to produce 20,000 Mt of nickel hydroxide and 800 Mt of cobalt hydroxide per year. The exploration work completed to date has concentrated mostly on the Sechol group of deposits, representing less than 5% of the current land position of Jaguar in Guatemala. Within Sechol, the company has identified a large pocket of more than 5 Mt of laterites grading 2.1% nickel and 0.08 % cobalt as a startup pit "El Inicio". Including the work previously completed Keywords: Laterite deposits, Ophiolitic Belts, Central Guatemala, Nickel, Cobalt