ASX-listed Mincor Resources (ASX:MCR) has seen a significant mineral resource increase within its tenements in the Kambalda nickel district in Western Australia, putting out its first resource at the Cassini prospect.
The company released the results of a maiden indicated and inferred resource for Cassini on Wednesday (August 1), noting that it comes in at 550,000 tonnes at 3.4 percent nickel for 18,700 nickel tonnes. Of that amount, 93 percent is in the indicated category.
The fresh results bring the measured, indicated and inferred resource for the company’s Kambalda holdings to 3.3 million tonnes at 3.6 percent percent nickel for 118,000 tonnes of contained nickel.
According to Mincor, the Cassini deposit shares many geological characteristics with larger nickel mines located throughout the Kambalda area.
The new resource results have “laid the foundations” for a potential new mine in the region; a follow-up diamond drilling program is set to take place at the prospect later this month, accompanying ongoing regional exploration programs.
The company also plans to carry out programs to progress components like environmental surveys; that will allow it to fast track any potential mining license applications and permitting activities for Cassini. Meanwhile, preliminary mining studies have also begun to identify proper mining approaches and capital designs, along with startup production schedules and cost estimates.
“We are delighted with the initial size and quality of the Cassini resource, which represents a big step forward for our nickel growth strategy,” Mincor Managing Director Peter Muccilli said in a statement.
“The emerging mining and production opportunity at Cassini is one of several nickel work programs underway at Kambalda which we believe will result in a new era of nickel production in the district — positioning Mincor to take advantage of the forecast growth in nickel markets in the coming years.”
Mincor’s share price was up 4.05 percent at the end of Wednesday’s trading on the ASX, closing at AU$0.38 per share.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.