Name of the Project
Kambalda nickel restart project.

Location
The project is located in the Kambalda district of Western Australia.

Project Owner/s
Mincor Resources.

Project Description
A definitive feasibility study has proposed the development of a mining operation, pro­duc­ing 63 000 t of recovered nickel-in-concentrate, with relatively low capital intensity.

The initial five-year operation is based on 2.5-million tonnes of ore grading 2.9% nickel for 71 000 t of contained nickel-in-ore and 5 000 t of copper-in-ore.

The Mincor nickel operations are expected to comprise the Cassini and Northern operations (Long and Durkin North) at the start, with the Miitel mine contributing towards the back half of the project life.

The flagship Cassini mine (a greenfield discovery by Mincor) is forecast to contribute 56% of the total nickel-in-concentrate production over the initial life of the project.

The mine plan involves underground extraction of the Cassini deposit through a boxcut and decline, mining 1.2-million tonnes of ore at an average nickel grade of 3.3% over five years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $305-million and an internal rate of return of 98%, with a payback of 12 months.

Capital Expenditure
Preproduction capital is estimated at $68-million, mainly associated with mine development and related infrastructure.

Planned Start/End Date
First nickel-in-concentrate production is expected in the second half of 2021.

Latest Developments
Mincor Resources plans to raise A$60-million through a share placement and a share purchase plan to fund exploration at its Kambalda projects.

Mincor has said it will raise up to A$50-million through a two-tranche fully underwritten share placement at 72c each.

The first tranche will comprise more than 24-million shares to raise A$17.3-million under the company’s existing placement capacity, while the second tranche placement of more than 45.4-million shares will be subject to shareholder approval.

In addition, Mincor will also undertake a share purchase plan to raise an additional A$10-million, enabling shareholders to subscribe for up to A$15 000 worth of new shares, also at 72c a share.

The issue price represents a 12.2% discount to Mincor’s closing price on June 23 and a discount of 4.6% to the company’s five-day volume-weighted average share price.

Existing shareholder Independence Group has committed to subscribe for A$13-million worth of new shares under the placement offer, increasing its shareholding in Mincor to about 8%.

The funding will give Mincor the confidence to complete resource extension drilling during the development timeline at Cassini Main, and to test the Durkin North to Long space from underground positions.

Further, the company’s regional exploration programme can continue at Cassini North, Bluebush, Juno and other targets.

Meanwhile, Mincor has announced a 16% increase in the mineral resource estimate at Cassini, currently at 58 700 t of nickel. This is the fourth successive increase since a maiden resource was announced in August 2018.

Mincor plans to mandate a bank or resource finance specialist in the September quarter to provide for the debt component of the funding package.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Mincor Resources, tel +61 8 9476 7200 or email mincor@mincor.com.au.