Mincor Resources NL (ASX: MCR), a Perth based exploration company, announced on 23rd April 2019 that the company increased its nickel Mineral Resource at the Cassini nickel sulphide deposit in Kambalda substantially. The company implemented a drilling strategy in March 2019 quarter, which resulted in a 52% increase in contained nickel to 28,500 tonnes.
The updated Indicated and Inferred Mineral Resources now stands at 780k tonnes with a grade of 3.7% of nickel. Mincor mentioned that the 780k tonnes of nickel represents an increase of 9,800 tonnes of high-grade nickel, as compared to the maiden Mineral Resource previously announced by the company in August 2018. Mincor recently entered a term sheet agreement with BHP and affirmed that Cassini is one of the most substantial, and highest-grade nickel resources in the Kambalda district, and the deposit will continue to emerge as a critical pillar in the company’s integrated nickel restart strategy in the Kambalda district.
Mincor encountered an intersection of 7.17m @ 11.49% Ni in the drill hole identified as MDD314 previously. Following the intersection, the company obtained five down-plunge intersections, which allowed Mincor to upgrade the existing mineral resources of the company. As per the company, the drilling with at least two diamond drill rigs at Cassini will continue, till the June quarter of the year 2019, with an aim to further enhance the Mineral Resource.
Geology of the Cassini Deposit:
The Cassini nickel deposit is at the southern end of the Widgiemooltha Dome, which lies in the southern part of the Archaean Norseman-Wiluna Greenstone belt. The deposit area is a sequence of sands and muds, which is linked to lake systems in the north.
Mincor has intersected sediments of the Black Flag group in the upper parts on the eastern side of the Cassini-nickel project. As per the company, a basaltic unit underlies beneath the Black Flag group’s upper portions. The characteristics of the basaltic unit are like the Devons Consul basalt in Kambalda.
Further, Mincor mentioned that thick ultramafic sequences are present beneath the basalt with the thin sedimentary unit, and high manganese oxide (>30%) ultramafic sequences are present above the basalt.
Mineral Resources: (as on 31st March 2019)
Mincor presented the updated total Mineral Resources of 3,541,000 tonnes with an average grade of 3.6% Ni, with 128,700 tonnes of contained nickel. The subdivision of the mineral resources led to the total Measured Mineral Resources of 256,000 tonnes with an average grade of 3.7 % Ni.
The Indicated Mineral Resource of the company stood at 2,967,000 tonnes, with an average grade of 3.7% Ni, and the Inferred Mineral Resource of the company stood at 318,000 tonnes, with an average grade of 3.3% Ni.
Apart from the Cassini deposit, the company has also gained the mineral resources from drilling program carried out at Ken and McMahon mines in December 2018 quarter, which in turn, increased the mineral resources by 900 nickel tonnes.
The total mineral resources at Cassini stands at 780,000 tonnes with 3.7% Ni and 28,500 tonnes of contained nickel. The Ken and McMahon total mineral resources stand at 262,000 tonnes with 3.7% Ni and 9,600 tonnes of contained nickel.
The mineral resources at other prospects are as: (As per JORC Code 2012 Edition)
Source: Company’s announcement on 23rd April 2019: Mineral Resources
The ore reserves of the company as on 30th June 2018 are as:
Source: Company’s announcement on 23rd April 2019: Ore Reserves
The stock of the company is currently trading at A$0.490 (as on 23 April 2019, 3:25 PM AEST), up by 6.52%.
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