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MacPhersons sees scope for ‘significantly longer’ mine life at Nimbus

MacPhersons sees scope for ‘significantly longer’ mine life at Nimbus

Photo by Bloomberg

24th September 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals developer MacPhersons Resources said, on Wednesday, it was hoping to increase the mine life of its Nimbus silver/zinc/gold project, in Western Australia, by incorporating the most recent drilling results into the project’s bankable feasibility study.

Previous scoping studies indicated that the project would require a total capital injection of between A$58-million and A$66-million, with all-in cash costs estimated at between A$12/oz and A$16/oz silver and between A$600/oz and A$1 050/oz gold.

Recent drilling results have prompted MacPhersons to embark on an extensive in-fill and extensional drilling campaign to grow the reserve and resource inventory at Nimbus beyond the predicted seven-year mine life.

“We have long believed that the upside at Nimbus is substantial and, therefore, we were highly confident that the mine life could be extended significantly beyond the initial five-and-a-half-year plan,” said MacPhersons MD Morrie Goodz.

“But it has become overwhelmingly clear that the benefits of bringing this additional inventory to book as part of the bankable feasibility study, and ahead of finalising the project funding, would deliver significant economic benefits to our shareholders. We have no doubt that these gains will be more than enough to warrant the extent of the timeline in the lead-up to first production.”

Meanwhile, despite moderating commodity prices, Goodz said that the project’s overall economics remained robust. Since January this year, zinc prices have increased, while the Australian gold price has remained basically unchanged.

The increasing value of zinc has focused attention on known zinc-bearing mineralisation, which would be assessed for reclassification of resource and reserves. Goodz said that MacPhersons would benefit from the diversified commodities basket of revenues.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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