Base metals: Mincor’s nickel resource upgrade inspires investors
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Investors were liking Mincor Resources’ (ASX:MCR) news today that it had delivered a 52 per cent increase in the resource for its Cassini nickel mine in Western Australia.
The mine now hosts 780,000 tonnes at 3.7 per cent nickel for 28,500 contained tonnes.
Anything over 3 per cent nickel is generally considered high-grade.
Shares gained as much as 6.5 per cent to trade at an intra-day high of 49c on Tuesday.
Over 80 per cent of the resource is now in the higher confidence indicated category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
By moving resources into the indicated category, it means a company has sufficient information on geology and grade continuity to support mine planning.
Cassini is the first new discovery in the belt in more than 20 years.
Mincor says the updated resource positions the Cassini find as one of the “largest and highest-grade nickel resources in the Kambalda district”.
It is expected to form the cornerstone of Mincor’s strategy to restart nickel production next year.
The company recently inked an off-take deal with BHP Nickel West, which needs more nickel ore for its Kambalda concentrator.
“The program at Cassini has gained pace since we signed the game changing off-take term sheet with BHP Nickel West on 19 March 2019, with our initial objective being to build a high-grade nickel resource inventory capable of supporting at least a four-year mine plan,” managing director David Southam said.
Mincor is aggressively pursuing a further resource upgrade with two rigs currently drilling.
Another resource update is slated to be delivered by the end of June quarter.
Junior explorer Consolidated Zinc (ASX:CZL) has reported its first reserve for the Plomosas underground mine – and it’s high-grade zinc. The Plomosas mine now hosts total proven and probable reserve of 73,850 tonnes at 13.82 per cent zinc, 2.38 per cent lead and 17.86 grams per tonne (g/t) silver. Anything over 12 per cent zinc is generally considered high-grade.
Stavely Minerals (ASX:SVY) has reported its largest and highest grade hit to date from the Thursday’s Gossan project. Drilling returned an intercept of 393m at 0.32 per cent copper with high grades of up to 17.5 per cent copper. Anything over 6 per cent copper is generally considered high grade.
Metallurgical testing at Zinc of Ireland’s (ASX:ZMI) Kildare project has yielded a 96 per cent recovery of zinc to concentrate and 86 per cent recovery of lead to concentrate. “These preliminary test work results have exceeded our expectations, even given that Irish-type zinc projects, such as Kildare, are renowned for their outstanding metallurgical performance,” executive director Patrick Corr said.