Mincor Resources
(ASX:MCR) says it has extended the life at its Kambalda nickel mining operations in WA’s Eastern Goldfields to six years, following an initial ore reserve assessment for the Golden Mile zone.
In its September quarterly report, the company declared an ore reserve of 475,000 tonnes at 2.6% nickel for 12,500 tonnes of nickel at Golden Mile, boosting the reserves in that area by 58%.
It also lifted the Kambalda reserve 18% as Mincor looks to integrate the area over the rest of 2022-23 with first stoping planned for the end of next year.
Mincor said it was pleased with the rapid progress achieved at the Golden Mile to date, with this initial reserve data coming just 16 months after the start of the exploration drilling program, and only three months after the delivery of the initial mineral resource.
“Importantly, the Golden Mile exploration work program is continuing, with the newly discovered LN04a Surface remaining open both up-dip and along strike as it extends along the Golden Mile towards Durkin North, with drill programs planned for the remainder of FY23 to unlock its full potential,” directors said in the report.
“The Company expects that additional drilling along the Golden Mile will continue to add significant Resources and Reserves to a re-invigorated Northern Operations as part of Mincor’s integrated nickel restart plan.”
Mincor chairman Brett Lambert said in the quarterly report:
“The initial ore reserve for the Golden Mile has not only provided a brand-new mining front for our northern operations, but has also proven the largely untapped potential of this vast exploration space to host significant, economic nickel ore reserves that can be fast-tracked into production utilising extensive existing infrastructure,” he said.
Elsewhere Mincor said in the quarterly report that despite challenging operating conditions in Western Australia early in the quarter, ramp-up activities are gaining momentum at the Kambalda Nickel Operations (KNO), with mined ore tonnes up by 33% in the quarter from the three months to June.
The company said it expects mined ore tonnes set to increase substantially as additional mining fronts become available with the Cassini ore development continuing to accelerate ahead of first stoping in the current December quarter.
The company said its 2023 financial year guidance of 8,000 to 10,000 tonnes represents the first full year of KNO with the southern Operations (Cassini) accommodation village now operational, ahead of schedule.
Mincor said it had $54.8 million in cash on hand at the end of the September quarter.
Mincor shares eased 0.7% to $1.34.
