Mincor Resources Boss David Southam has described the explorer’s nickel sulphide discovery at Kambalda as “one of the most exciting new base metal discoveries in recent years”.

The company flagged a resource upgrade at Cassini for early next month after last week revealing stellar intersections of 12.3m at 5.1 per cent nickel including a sulphide core of 9.7m at 6 per cent.

The upgrade will be the third this year after the explorer upped its tonnage at the greenfields discovery by 52 per cent in April and then by another 33 per cent in August.

Mincor’s current resource stands at 1 million tonnes at 3.8 per cent for 37,800 nickel tonnes.

It bodes well for the once-embattled miner which shut down operations at Kambalda in 2016 after a long downturn in the nickel price.

But the commodity’s recent price rally, coupled with rapidly diminishing stockpiles, means Mincor is looking to restart operations next year, with promising drill hits bolstering plans.

Recent success at Cassini, however, means a definitive feasibility study scheduled for the end of the year has been pushed back to the March quarter to allow Mincor to factor in recent drilling.

Mincor’s report for the September quarter released yesterday said the hold-up was also partially because of drilling delays at the explorer’s Spanner target.

Mr Southam said Mincor was otherwise on track to take advantage of market conditions.

“Another key achievement in the quarter was the completion of a comprehensive tender for an underground mining contract covering Cassini, Durkin North and Long with reputable, experienced contractors,” he said.

“We hosted several site visits and, towards the end of quarter, received all submissions which are currently under review for short- listing.

“Running a dual track process of short-listing preferred mining contractors while completing resource extension and conversion drilling will ultimately save Mincor time when the definitive feasibility study drilling program is completed in the December quarter.”

Mincor yesterday said confirmation from the Indonesian Government of the ore export ban being brought forward to January, 2020 was a significant factor.

It said London Metal Exchange stockpiles fell during the quarter by 6732 tonnes to 157,986 tonnes, or less than 15 days global demand.

“Importantly for Mincor, with the lack of new nickel sulphide discoveries globally and a limited project development pipeline, the company’s restart plans for its high-grade nickel sulphide projects appear to be perfectly aligned to benefit from the forecast nickel supply shortfall,” Mincor said.

Image: Mincor Resources Managing Director David Southam at Diggers and Dealers 2019 Kalgoorlie Miner.


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