JOHANNESBURG (miningweekly.com) – Australian nickel miner Mincor Resources reported on Wednesday further strong progress at all four of its new growth projects in the Kambalda nickel district, in Western Australia.

The company said that successful drilling boosted its nickel resource inventory across three key deposits and highlighted the substantial potential of its new Cassini discovery.

Mincor stated that its suite of nickel assets demonstrated the robustness of its emerging growth pipeline, which placed it in a strong position to take advantage of forecast improvements in the nickel price.

Key highlights included substantial resource upgrades at Burnett and Durkin North, together with a maiden mineral resource for the Voyce nickel discovery.

Additionally, the company also defined an exploration target at the Cassini deposit, which further demonstrated the site’s “significant potential”.

At Durkin North, infill drilling was completed into the upper mineral resources at the D1 and D2 deposits. This followed a detailed review of the geology of these previously identified mineral resources, which highlighted the potential for a substantial increase in metal content.

Based on this work, Mincor drilled eight holes into these upper resources. These holes were successful and have underpinned a 46% increase in the total metal content of the D1 and D2 mineral resources.

The company noted that when combined with the lower mineral resources, the total mineral resource at Durkin had increased by 12%, at an improved nickel grade.

“Fully 97% of the mineral resource is now classified with Durkin North’s mineral resource recorded at 427 000 t at 5.2% nickel for 22 400 t of nickel.”

Moreover, Mincor pointed out that at Burnett, which is the northern extension of the operating Miitel mine, infill drilling into the B01 mineral resource had generated a substantial increase in metal content and grade.

The company said this was significant because if the B01 proved economically viable it would “greatly improve” the economics of the larger but more distant B02 mineral resource.

The infill drilling brought about an estimated 27% increase in the metal content of the B01 mineral resource and a 34% increase in the nickel grade, lifting the metal content of the total Burnett mineral resource by 8%.

The entire Burnett mineral indicated resource had now been classified. The
B01 mineral resource contains 94 900 t at 3.5% nickel for 3 400 t of nickel metal. B02 has 146 000 t at 4.3% nickel for 6 400 t of nickel metal. Burnett’s total resource is 241 000 t at 4% nickel for 9 700 t of nickel metal.

Additionally, Mincor stated that resource estimates were also completed for its Voyce discovery.

“As expected, a small but high-grade resource has been defined, of which 78% has been classified. Therefore, Voyce’s mineral resource has 64 000 t at 5.2% nickel for 3 400 t of nickel metal.”

This resource is present in four separate pods that lie less than 150 m below the surface in the upper part of the Voyce channel structure. The channel structure has been demonstrated to continue at depth and its depth extension remains highly prospective.

At Cassini, where mineralisation has been defined in six drill sections about 80 m apart over a 430 m strike length, there is as yet insufficient drill density to allow for the estimation of a mineral resource.

However, Mincor said that it had identified an exploration target within the area of drilling of between 400 000 t and 500 000 t at grades of between 3% and 4% nickel.

“This target is as yet conceptual in nature and there is no certainty that further exploration will result in the estimation of a mineral resource,” the company highlighted.

This exploration target does not include the additional potential lying outside the area that was drilled, including both down-plunge and in other channel structures associated with the magnetic high.

Based on this target, Mincor’s initial conceptual scoping study on Cassini suggested that the next stage of infill drilling was “strongly warranted”.

Mincor also said it was carrying out a feasibility study on Burnett and a scoping study on Voyce.

“A feasibility study on Durkin is planned for completion before the end of this year. Meanwhile, planning for the resumption of drilling at Cassini, both detailed resource-level infill drilling and exploration drilling outside the area of the defined exploration target, is well advanced,” the company stated.

Mincor MD David Moore said on Wednesday that the company’s test results “more than justified” the decision to ramp up exploration across its key growth projects a year ago.

“We now have an emerging suite of nickel assets that could represent the next phase of production growth for Mincor in Kambalda. This places us in an exceptionally strong position to take advantage of a future rise in the nickel price, as is predicted by many experts,” he concluded.