The Shevchenko nickel silicate mineralisation is contained within a north-south trending ultramafic complex, comprising predominantly serpentinites. The ultramafic units form a range of low hills that stand some 35-60m above the surrounding plain. The Ni silicate mineralisation derives essentially from a protracted period of weathering of the host serpentinite rock that concentrated the Ni-Co mineralization in the residual weathered near-surface material. However, due to subsequent erosion, only certain areas of this weathered layer now remain, thus giving rise to variably distributed mineralization that shows considerable variation in thickness.

Grade distribution, is variable, but does show quite good continuity, particularly within the thicker central parts of ore bodies. Eight mineralised zones have been identified comprising Shevchenko, Tarasov, Grigoriev, Blizhny, Ubileyny and Uzhny 1, 2 & 3. Within each zone, a number of separate mineralized bodies usually occur, often horizontal, of variable length and thickness, and generally within 10m of the surface.

Wardell Armstrong International (WAI) in April 2004 remodelled the Blizhny, Shevchenko, Grigoriev and Tarasov ore bodies, which comprise only part of the overall Shevchenko property. Using the full drill data for these four ore bodies, WAI established a Measured & Indicated Resource of 34.3Mt @ 1.02% Ni, 17Mt. A further Inferred resource of 11.7Mt @0.97% Ni is present at Tarasov, which WAI believes will predominantly transfer to Indicated status with additional confirmatory drilling and/or geophysical testing.

The resource study by WAI demonstrated a significant tonnage for the Shevchenko deposit. The resource block models including the addition of overburden and other waste material has been used as the basis for subsequent open-pit planning work and the reserve estimation.