Johannesburg — LONDON- listed mining exploration company Jubilee Platinum expects mining majors to start bidding for a new nickel and copper project in Madagascar soon, CE Colin Bird said yesterday.

This follows encouraging results from samples taken from its explorations in the Londokomanana reserve, suggesting there is potential for a viable mine to be opened.

"What was found is the start of what could be a major nickel and copper system," said Bird.

Large mining groups seek new large-scale resources because of rising demand, he says.

"This looks like it fits the model," he said. "We intend to accelerate our exploration programme in order to assess better this potentially very valuable deposit."

He said there needed to be more exploratory drilling, leading to the production of a bankable feasibility study .

"These projects generally end up in the hands of the mining majors, as they are capital-intensive and are major mining projects," he said.

Bird said the options for Jubilee could include a joint venture, equity funding for the mine "or the sale of the asset or of Jubilee itself".

He said that there had already been some interest from major players.

If the mine were developed, much of the skilled manpower, equipment and materials would be sourced from SA.