Mincor Resources NL (ASX: MCR) has announced a highly positive update from its Cassini nickel sulphide deposit at Kambalda, Western Australia, with an increase in the Cassini Mineral Resource to 780kt @ 3.7% Ni for 28,500 nickel tonnes. This is a 52% increase, or 9,800 nickel tonnes, from the previously announced resource. A minor update to the Ken Mineral Resource had also resulted in the addition of 900 nickel tonnes.
The company attributed this significant increase to its successful drilling strategy implemented in the March 2019 quarter, with two diamond drill rigs working. Currently, Cassini is one of the largest and highest grade nickel Mineral Resources in the Kambalda district.
The company noted that 83% of the Cassini Mineral Resource is now in the Indicated category, available for conversion to Ore Reserves. The Total Mineral Resource inventory for Mincor now stands at 3.5Mt @ 3.6% Ni for 128,600 nickel tonnes with 84% in the Indicated category.
MCR said that it is focusing on building mining inventory following the recently signed offtake term sheet with BHP Nickel West. The company reported that the next Mineral Resource update for Cassini is targeted towards the end of the June 2019 quarter.
Cassini Nickel Project
The Cassini Nickel Project area lies on the southern end of the Widgiemooltha Dome in the southern part of the Archaean Norseman–Wiluna Greenstone Belt. Two open ended resource trends have been delineated at Cassini to date, CS2 and CS4.
Mincor Resources’ nickel restart strategy is centred on four key production hubs at Cassini, Durkin North, Ken/McMahon, and Miitel/Burnett. MCR had recently signed offtake term sheet with BHP Nickel West aimed to build a high-grade nickel resource inventory capable of supporting at least a 4-year mine plan.
Updated Mineral Resources
Cassini Mineral Resources were estimated by independent consultants from Cube Consulting Pty Ltd in conjunction with Mincor technical staff.
The company reported that the Cassini Mineral Resource now stands at 780kt @3.7% Ni for 28,500 nickel tonnes. This is an increase of 9,800 high-grade nickel tonnes from August 2018. The company attributed this increase to its well-executed diamond drilling strategy for accelerating exploration at Cassini. Meanwhile, the assay results from a small drilling program at Ken resulted in the addition of a further 900 nickel tonnes to the Mineral Resource.
Mincor announced that the total nickel Mineral Resources across Mincor’s Kambalda tenements now stands at 3.5Mt @ 3.6% Ni for 128,700 nickel tonnes following the completion of the updated Cassini and Ken Mineral Resources.
Further Drilling, Resource Update
MCR reported that drilling planned in the June quarter will involve a further 80 metre step out to the south, plus further in-fill drilling to increase the current CS4 Mineral Resource, whilst continuing to also test the CS2 position.
The company said that it plans to announce a further Mineral Resource update towards the end of the 2019 financial year in case the trend of further mineralisation continue with this drilling program.
Mincor’s Managing Director David Southam, said: “This is a tremendous result which justifies our decision to increase the number of rigs operating with a focus on rapidly increasing the resource and testing extensions, particularly in the CS4 channel”.