Mincor Resources has commenced a diamond drilling program at the Kambalda region to test for extensions to its Cassini deposit of nickel sulphide.
The diamond drilling, conducted earlier this month, has lifted the company’s total nickel mineral resource estimate to 3.3Mt at 3.6 per cent nickel for 118,000 contained nickel tonnes.
Cassini is one of Mincor’s several growth opportunities in the Kambalda region. Along with Durkin North, Ken/McMahon and Miitel/Burnett, Cassini underpins Mincor target to restart its nickel mining operations.
Mincor ceased its nickel production in February 2016, following a decline in nickel prices through the 2016 financial year. Nickel prices hit a 14-year low in the March 2016 quarter.
Mining studies are underway to establish the economic viability at Cassini, and to review the mining approach at Durkin North to improve its ore reserve grade.
The Cassini deposit shares many key geological characteristics with other nickel sulphide mine camps seen in the Kambalda District. They are known to generate long-lived channels and parallel mineralised trends.
Apart from the company’s nickel exploration, Mincor’s primary focus for the year included developing its Widgiemooltha gold project in Western Australia.
Widgiemooltha poured its first gold in July. Cash flows from Widgiemooltha will contribute to the advancement of Mincor’s nickel operations in Kambalda.
The Kambalda district is in the heart of the Eastern Goldfields of Western Australia.