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Mincor exceeds expectations after doubling gold inventory

2nd June 2016

By: Samantha Herbst

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Having completed its mineral resource estimates for all six of its most advanced Western Australia gold prospects, ASX-listed gold and nickel firm Mincor Resources announced on Thursday that its total gold resource inventory at the Kambalda gold operation had doubled to 238 640 oz from 117 000 oz reported early last month.

Each of Mincor’s six selected prospects in the Kambalda-Widgiemooltha area yielded a significant gold resource, far exceeding Mincor’s initial target of 100 000 oz in resources.

Mincor CEO Peter Muccilli highlighted the rapid growth of the company’s gold resource inventory, increasing its confidence in the potential to establish a series of initial small-scale gold mining operations in the area.

“While we are yet to confirm the economic viability of these gold resources, we are encouraged by the rapid growth in our resource inventory and the shallow and accessible nature of the gold. We believe that if our ongoing studies confirm that an initial small operation is viable, it could have the potential to be expanded quickly on the back of early exploration success, especially given the exceptional gold endowment of the region,” said Muccilli.

“While there is plenty of work still to do, our Kambalda Gold Strategy has clearly got off to a flying start,” he added.

The positive results provided Mincor with a strong foundation for the company’s recently announced Kambalda Gold Strategy, which targeted the development of a near-term gold production opportunity based on a series of low-cost openpit mining operations.

The two newly completed estimates – on the Darlek and Flinders prospects – added 122 520 oz to Mincor’s in-ground gold resource, lifting the total to 238 640 oz, which was more than double the figure last reported and up from zero at the beginning of the year.

Of the six prospects that hosted the gold resources, five lay close to each other in the Kambalda district near Widgiemooltha, within Mincor’s long-standing area of nickel mining operations, which were currently on care and maintenance. The sixth prospect, Jeffreys Find, lay to the south near Norseman.

These prospects comprised the initial core of Mincor’s Kambalda Gold Strategy, which the company believed could help establish near-term cash-flows through the mining of several openpits in sequence, with the ore processed through toll treatment arrangements.

Given the location of the prospects in the heart of Australia’s premier gold district – the Eastern Goldfields of Western Australia – the exploration potential of the prospects and the wider area added significant upside to the initial small-scale production opportunity.

Mincor would now commence an assessment of the Widgiemooltha gold resources, which would proceed in parallel with the more advanced study that was already under way at Jeffreys Find. If this initial assessment was positive, more detailed studies, including drilling, could be warranted.

Edited by Creamer Media Reporter

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