Consolidated Minerals has set an ambitious target of 15,000 tonnes of nickel per year within the next three to five years as the company ramps up its key Western Australian nickel exploration and mining operations.

The company - which has just completed its first full year of nickel production for a 4,445 tonne outcome - said it would push this 40% higher to between 6-6,400 tonnes by end of June 2007 at a targeted cash cost of Aus$4.50-$5.00 per pound.

The company has exploration and mining operations centred around Kambalda and the nearby Widgiemooltha Dome, south of Kalgoorlie.

Consolidated Minerals' chief operating officer, Mr Alistair Croll said recently that nickel was the growth platform for the company, which also has established manganese and chromite businesses as well as interests in iron ore, zinc and copper.

"After coming through a watershed year for the company, we have geared Consolidated Minerals for growth with a new board and management team and will be seeking to bed down synergies from the Titan acquisition by developing these extensive nickel assets," Alistair Croll said.

"In essence, we want to boost output at Kambalda and get a mine going at Widgiemooltha within the next 2-3 years with a view to lifting total production to 15,000 tonnes per annum in the next 3-5 years through a well defined and cost managed nickel division."

Alistair Croll says the immediate expansion focus was on establishing twin exploration and development drives as a southern extension of the Kambalda operations (77,000 tonnes contained metal) and establishing a mine at Widgiemooltha (123,000 tonnes contained metal) - with both stages supported by focused and ongoing exploration.

The Kambalda extension will include a one kilometre southward extension of the Beta Hunt South decline and a two kilometre extension of the East Alpha exploration decline.

This work would be aided by the expected completion by the end of June 2007 of a new 620 metre deep, $14.5 million ventilation raise at East Alpha to allow an increase in production capacity.

In addition, a refined and accurate development model was being evolved to maximise the value of the Kambalda ore body by incorporating all data sources.

On Widgiemooltha specifically, Alistair Croll says these assets would augment Consolidated's nickel growth strategy.

"The project has an extensive and prospective land position of 227 square kilometres, a JORC compliant contained nickel metal resource of 123,000 tonnes and eight existing deposits," Alistair Croll says.

"One of these key assets is the Widgie Townsite resource of 2.0 million tonnes @ 1.9% nickel including a higher grade component of 271,000 tonnes @ 2.4% to be subjected to ongoing extension and infill drilling.

"A dedicated project team has been assigned to complete a range of environmental, heritage and technical studies by March next year with a view to establishing a new mine within the project within 2-3 years."